Infibeam to demerge SMEs, e-commerce, and marketplace

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Infibeam Avenues Limited (IAL) one of India’s competing fintech firm in the field of digital payments, e-commerce software, and internet services has announced on Saturday, 28 November 2020 that they have received approval from National Company Law Tribunal (NCLT), Ahmedabad for demerging various entities owned by them. This includes Small Medium Enterprises (SMEs), e-commerce services, and e-commerce business undertakings. Infibeam Avenues Limited will be demerging its SMEs, e-commerce as well as the e-commerce marketplace business to Suvidhaa based on the ‘Composite Scheme of Arrangement’. The theme park and event businesses of Infibeam will be demerged and vested to DRC Systems.

Infibeam Avenues Limited (IAL) stated that on 11 December 2020(record date) all the shareholders of IAL will be allocated with additional shares of Suvidhaa Infoserve Limited and DRC Systems India Limited under the new scheme. No additional costs will be charged for this. Suvidhaa Infoserve Limited will be issuing 197 equity shares for every 1,500 equity shares for the shareholders of IAL, while the other company that is, DRC will be issuing 1 equity share for every 412 equity shares for shareholders of IAL.

The ‘Composite Scheme of Arrangement’ is effective from April 1 2020 though the record date is being fixed on 11 December 2020. Even after the demerger, IAL will focus on the high growth, high scalable, and profitable fintech business of digital payments and enterprise software platforms. The new scheme will assist Infibeam Avenues to unlock value for its shareholders. Based on the regulatory approval Suvidhaa and DRC will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

In July 2020, based on the recommendations of the Audit Committee the Board had approved the Composite Scheme of Arrangement and has received the observatory consent and approval from the stock exchange. Suvidhaa Infoserve Limited provides last-mile financial services to more than 40 million customers by various offline and online delivery channels. DRC Systems India Limited offers cloud enterprise ERP solutions, customized software for e-commerce applications, web technology analysis including testing in several programming languages, payment processing systems, and various other services.

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