Infibeam Avenues Receives Stock Exchange Observatory Consent On Proposed Composite Scheme Of Arrangement For Filling With NCLT

Global Financial Technology (FinTech) solutions provider Infibeam Avenues, announced, that it is on track to unlock shareholder value through the demerger of its SME E-commerce and E-commerce marketplace businesses to Suvidhaa and Theme Park & Event business to DRC Systems. Post regulatory approval of the proposed scheme, both the entities will be listed on the stock exchanges (BSE/NSE) and shareholders of Infibeam will get additional shares of both entities Suvidhaa and DRC without additional investment as on the cut off date.

Last year, the Board of Directors of the Company on the recommendation of the Audit Committee has considered and approved the Composite Scheme of Arrangement between Suvidhaa Infoserve, DRC Systems India and NSI Infinium Global. The Company has received observatory consent and approval from the Stock Exchange on proposed Composite Scheme of Arrangement for filing with the National Company Law Tribunal ‘NCLT’. Post NCLT order, Suvidhaa will issue equity shares to the shareholders of Infibeam i.e. shareholders of Infibeam in the ratio of 197 equity shares of Suvidhaa for every 1500 equity shares to the shareholders of Infibeam Avenues Limited and 10 equity shares of DRC for every 4120 shares of Infibeam.

Suvidhaa provides last-mile financial services to more than 40 million unique customers through both offline and online delivery channels. It has one of the largest networks across India with a reach spanning more than 4500 PIN codes with more than 91,000 franchise outlets. Suvidhaa provides services and financial products through its partnerships with over 300 financial institutions and service providers. Suvidhaa 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 a minority stake in Suvidhaa.

DRC Systems offers Cloud Enterprise ERP solutions, customized software for e-commerce applications, Web Technology Analysis, Mobile Technology Analysis including Testing in several programming languages (iOS, Android and Windows Mobile) services across e-commerce, content management system, payment, processing system, mobile application, learning management system as well as ERP for both front-end user interface as well as back-end. The Company is profitable and has operations in India, US, Germany, Netherlands and the Middle East region.

Through the demerger, shareholders of Infibeam Avenues will benefit hugely with an additional allocation of shares of both Suvidhaa and DRC post NCLT order. Infibeam Avenues will continue to focus on its core businesses which include Digital Payments and Enterprise Software Platform solutions, to accelerate growth and market leadership in digital space.