Fintech firm Infibeam Avenues Ltd (IAL) on Saturday said it has received approval from the National Company Law Tribunal (NCLT), Ahmedabad, for demerger of its various entities, including SME e-commerce service and e-commerce business undertaking. Under the ‘Composite Scheme of Arrangement’, IAL had sought to demerge its SME E-commerce as well as the E-commerce marketplace businesses to Suvidhaa, while theme park and event business will be demerged and vested to DRC Systems.
Under the scheme, all IAL shareholders (on the record date of December 11, 2020) will be allocated additional shares of Suvidhaa Infoserve Ltd and DRC Systems India Ltd without any additional cost, IAL said in a statement on Saturday. Suvidhaa will issue 197 equity shares for every 1,500 equity shares to the shareholders of IAL, while DRC will issue 1 equity share for every 412 equity shares to IAL shareholders, it added.
The composite scheme of arrangement is effective from the appointed date i.e. April 1, 2020, and the record date has been set as December 11, 2020, the statement said. “The Composite Scheme of Arrangement will assist Infibeam Avenues to unlock value for its shareholders. Subject to regulatory approvals, Suvidhaa and DRC will get listed on the stock exchanges ie BSE and NSE,” it added. IAL will continue to focus on the high growth, highly scalable and profitable fintech business of digital payments and enterprise software platforms, it said.
Last year, the Board – on the recommendation of the Audit Committee – had considered and approved the Composite Scheme of Arrangement and received observatory consent and approval from the stock exchange in July, 2020 for filing with the NCLT, the statement said. Suvidhaa provides last mile financial services to more than 40 million customers through both offline and online delivery channels. It will leverage its existing offline capabilities to scale the product business of Infibeam Avenues and focus on niche product verticals with margins. Infibeam will leverage the physical retail location of Suvidhaa to offer last mile logistics across the country.
Shapoorji Pallonji Mistry is an angel investor and owns minority stake in Suvidhaa, as per the information in the statement. DRC Systems offers cloud enterprise ERP solutions, customised software for e-commerce applications, web technology analysis, mobile technology analysis including testing in several programming languages, services across e-commerce, content management system, payment processing system and others. The company is profitable and has operations in India, the US, Germany, the Netherlands and the Middle East region.