Info Edge board approves 1:5 stock split, shares jump 3%

Info Edge (India) on Wednesday announced that its board of directors approved a proposed split of its equity shares in the ratio of 1:5. The company disclosed this development in an exchange filing.

Shares of Info Edge (India) rose 3% to Rs 7,938.9 on the BSE following the announcement, as investors welcomed the move aimed at improving liquidity and making shares more accessible.

The stock split will see each existing equity share with a face value of Rs 10 divided into five shares with a face value of Rs 2 each.


The subdivision of shares will enhance accessibility and encourage wider participation in the company’s stock, Info Edge said in the exchange filing. The company will finalize a record date for the split after securing shareholder approval through a postal ballot.

This is Info Edge’s first stock split, though it had issued bonus shares in 2010 and 2012 at a 1:1 ratio. The company has distributed Rs 66 per share in dividends over the last three years.

Despite Wednesday’s gain, Info Edge shares remain about 15% below their all-time high of Rs 9,128. The company’s shares have risen over 53% in the past one year and advanced nearly 10% in the last six months, while the stock has witnessed a decline of over 12% in the past one month.

The average consensus target price for Info Edge shares is Rs 8,270, which implies a potential upside of over 4% from the current levels. According to Trendlyne data, 17 out of 21 analysts covering the stock suggest a “buy” rating, three recommend “hold”, while one suggests “sell”.

The company is also set to report its December quarter earnings later in the day.

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