Infibeam Avenues Approves ₹7 Billion Rights Issue to Support Growth, Shareholders Entitled to New Shares

Infibeam Avenues Ltd, a top digital payments and e-commerce solutions company, has declared board approval to raise a maximum of ₹7 billion via a rights issue of equity shares. The step is to enhance the company's capital base, aid its growth plans, and upgrade its technology infrastructure in view of increasing demand for digital payment solutions.

 

Board Approves Rights Issue of up to ₹7 Billion:

Infibeam Avenues' board, in its May 9, 2025, meeting, approved the raising of funds through the issue of shares on a rights issue basis for an aggregate amount not exceeding ₹7 billion. This will enable existing shareholders to buy additional shares in proportion to their existing holding, usually at a discounted rate.

 

Shareholder Eligibility and Record Date:

The company will make an announcement specifying a record date to identify shareholders who are entitled to subscribe for the rights issue. Those whose names are registered as of the record date will be entitled to subscribe for the new shares.

 

Strategic Purpose:

The funds raised will be employed to finance Infibeam Avenues' growth ambitions, such as expanding digital payment platforms, making investments in new-age technologies, and catering to domestic and overseas growth. The group, which recorded FY24 transaction volume of ₹7 trillion and has more than 10 million clients, is gearing up for the next leg of growth in India's flourishing fintech industry.

 

Recent Corporate Actions

This rights issue is a follow-up of a string of strategic actions by Infibeam Avenues, such as recent demerger and distribution of shares in Odigma Consultancy Solutions. Proactive capital management by the company indicates its emphasis on shareholders' value creation and resilience in business.

 

Market Context:

The share price of Infibeam Avenues was ₹16.12 as on May 9, 2025, and it had a market capitalization of ₹4,482.72 crore. It is likely that the rights issue will increase the liquidity and dilute the equity base, rendering the stock more desirable to the investors.

 

"The rights issue will give existing shareholders the chance to add to their holding at preferential rates, as well as allowing the company to advance its digital payments and e-commerce innovation," added a company spokesman.

 

With the approval in hand from the board, specifics on the price of the rights issue, ratio of entitlement and timeline will come out soon. Investors and industry observers are to wait for an official record date and subscription window.

 

Source: Economic Times, Business Today, CCAvenue, Zerodha