Infibeam Avenues' shares will be in focus as its UAE-based subsidiary, Avenues World FZ-LLC, is set to raise around $25 million in a pre-IPO round. The subsidiary is raising these funds from a select group of investors as it prepares for a listing on the UAE capital market.
Stake Ownership and Transaction Details
Following the fundraise, Vavian International Limited, a wholly-owned subsidiary of Infibeam Avenues, will maintain a stake of 75% or more in Avenues World FZ-LLC. This transaction, which is expected to be finalized within the next 45 days, will result in Avenues World FZ-LLC ceasing to be a wholly-owned step-down subsidiary of Infibeam Avenues.
Regulatory Compliance and Corporate Structure
Infibeam Avenues clarified that this transaction does not fall within the related party transaction category, and the promoter companies have no interest in it. Furthermore, Avenues World FZ-LLC is not considered a material subsidiary as per the provisions of the Companies Act, 2013, and SEBI Listing Regulations.
About Avenues World FZ-LLC
Avenues World FZ-LLC is a fintech company that offers multi-currency payment gateways, B2Biz payments, ccavenue phonepay, and finance solutions.
Company Background and Recent Developments
Established in 2007, Infibeam Avenues is a listed company providing comprehensive digital payment solutions and enterprise software platforms to businesses and governments across various industry verticals. Earlier in March, the company received final authorization from the Reserve Bank of India (RBI) to operate as a payment aggregator through its payment gateway brand, CCAvenue.
Infibeam Avenues boasts a broad base of more than 10 million merchants on its platform and onboarded over 500,000 merchants in the first half of FY24, thanks to its strong relationships with bank partners and merchants. The company also launched a mobile app under the CCAvenue brand, known as CCAvenue TapPay, which it claims to be India's first pin-on-glass SoftPoS solution for merchants and kiranas nationwide.
Financial Performance
In Q3 FY24, Infibeam Avenues reported a significant jump in profit after tax, increasing by 64% to INR 42.1 crore from INR 25.7 crore in the same quarter of the previous year. Operating revenue also more than doubled to INR 912 crore in Q3 FY24 from INR 414.7 crore in the corresponding period of the previous year.
Infibeam Avenues' shares opened at INR 35.34 apiece on Wednesday, March 27.
