Stocks of Info Edge, a company owned by job portal Naukari.com and matrimonial website Jeevansathi.com (Jeevansathi.com), fell more than 9% on Tuesday. However, shortly before the market closed its position recovered slightly and the company’s stocks closed 7.62% down at Rs 5100. While its shares closed at Rs 5506 on Monday. That is, investors have lost Rs 420 per share today.
Stocks of the company fell sharply today, with Info Edge unable to make a new deal, due to possible delays in the much-anticipated IPO of online food delivery company Zomato and no clear timeline. Let us tell you that Info Edge has a 19% stake in Zomato. Investors of the company were eagerly awaiting the announcement of future deals and acquisitions, but the company’s management did not give any clarity after the December quarter results were released. This disappointed the company’s investors.
No clear timeline on the new deal
Hitesh Oberoi, CEO of Info Edge, told Semwar that any new deal takes time after the market closes. If we go two steps forward, then we also have to pull back one step at the same time. He said that the company cannot provide a clear timeline for the new deal. Investment firm Ambit Capital Pvt. Ltd experts said that after raising $ 250 million or about Rs 1822 crore through QIP in August 2020, the company has made progress in the possible acquisition of companies in the matchmaking and realty sectors, but the company has not been able to provide any timeline. happened.
No firm assurance on Jomato’s IPO
Apart from this, the company has also failed to give any firm assurance to investors regarding Jomato’s IPO. According to reports, Zomato will apply for its IPO in the first half of 2021, but a final decision is to be taken by Zomato’s board of directors. Let us know that Info Edge has a stake in many companies like Education.com, 99acres.com, Policy Bazaar and Mydala.
Stocks may fall and fall
Investors are disappointed due to both these reasons and the company’s stocks may decline further. Brokerage firm JM Financial Securities has given a target price of Rs 4980 for Info Edge stocks, which is less than today’s market price. At the same time, Ambit Capital Pvt. Ltd has given a target price of only Rs 4217 per share for its stocks. The firm says that with the IPO of Zomato and Policy Bazaar, there is less scope for the company to increase its valuation.