Infibeam Board Approves Demerger Of Subsidiaries Suvidhaa, DRC Systems
The board of Infibeam Avenues Ltd. has approved demerger of subsidiaries Suvidhaa Infoserve and DRC Systems, which will be listed at a later date.
The demergers are seen as part of Infibeam’s broader business restructuring plan.
Infibeam Avenues will spin off its SME e-commerce services unit to Suvidha Infoserve, the Ahmedabad-based company said in an exchange filing on Thursday. According to the swap ratio set for the demerger, an Infibeam shareholder will get 197 shares in Suvidhaa Infoserve for every 1,500 shares they hold in the company.
DRC Systems will house Infibeam’s themepark and event software business. Every Infibeam shareholder will one share of DRC Systems for every 412 shares they hold in the company. Infibeam had acquired DRV Systems in 2017.
The listings of Suvidhaa and DRC Systems will be subject to regulatory approvals.
According to the regulatory filing, the restructuring will allow the management of each of the resulting companies to pursue independent growth strategies in markets and create enhanced value for shareholders.
It will also enhance competitive strength, achieve cost reduction and efficiencies of the aforesaid companies and thereby, significantly contributing to future growth.
On Friday, Infibeam shares rose 2.13 percent to Rs 40.80 apiece on the BSE while the benchmark Sensex gained 0.76 percent to end the day at 37,384.99 points.