Info Edge India stock in focus on increament of FII limit

Info Edge India (IEIL) got approval from the Reserve Bank of India (RBI) to raise the limit of foreign shareholding to 50 per cent of its paid-up capital. Earlier, FIIs were allowed to invest up to 40 per cent of the paid up capital in the company. Now, FIIs and FPIs can invest up to 50 per cent in IEIL under the Portfolio Investment Scheme (PIS). The share price of the company on BSE increased by 8.53 per cent in early trades and trading at Rs 771.5 on intraday basis.

In the board meeting, IEIL passed resolutions to agree for increasing the limit for the purchase of its equity shares and convertible debentures by FIIs or registered FPIs. The purchases could be made through primary market and stock exchanges.

As per the June 2015 quarter, FII holdings in the IEIL stood at 29.23 per cent. The major overseas investors holdings in the company such as Aranda Investments Mauritius at 2.72 per cent , FIL Investment Mauritius at 1.35 per cent, WF Asian Smaller Companies Fund at 1.14 per cent, Matthews India Fund at 2.55 per cent and Emerging Markets Growth Fund at 1.07 per cent. The Promoter and promoter group shareholding stood at 43.73 per cent.

Considering latest quarter's financial data, IEIL reported revenue of Rs 173 crore with a growth of 18.52 per cent in Q1FY16 on yearly basis. The company's total expenditure increased by 54.62 per cent to Rs 148 crore in Q1FY16 compared to same period in previous fiscal year. The total expenditure increased predominantly due to 173.81 per cent increment in admin and selling expense during the quarter. IEIL's EBITDA declined by 51.61 per cent to Rs 23.83 in Q1FY16 on yearly basis. The net profit of the company decreased by 27.78 per cent to Rs 28.75 crore in Q1FY16 on yearly basis.

IEIL is an online classifieds company. The Company has business of Internet based service delivery operating in four service verticals through web portals. Its service verticals include Naukri.com for recruitment related services, Jeevansathi.com for matrimony related services, 99acres.com for real estate related services and Shiksha.com for education related services. IEIL also offers placement search services, resume sales services and real estate broking services. The company's recruitment portfolio is supported by the offline executive search business like Quadrangle and associated portal, www.quadranglesearch.com. It also offers a fresher hiring site, www.firstnaukri.com. IEIL operates in 43 cities in India. It also operates in Dubai, Bahrain, Riyadh and Abu Dhabi.