A Meeting of the Board of Directors of Niyogin Fintech Ltd, was held on Wednesday, September 5, 2018 at 7:00 p.m., to consider and in-principally approved the acquisition of the majority equity stake in Investdirect Capital Services Private Limited.
Niyogin Fintech Limited (the "Company") proposes to acquire approximately 50.10% of the voting share capital on a fully diluted basis in Investdirect for a total consideration of about INR 12 crores ("Equity Stake"). This will be a non-cash transaction to be executed in the form of an equity swap, wherein the Promoters of InvestDirect will transfer the Equity Stake part to the Company and in lieu of the same, the Company will issue the requisite number of equity shares to the Promoters of InvestDirect as may be determined in accordance with the applicable SEBI regulations. Depending on business requirements, there could be further cash infusion by the Company in InvestDirect.
Investdirect is in the business of distribution of financial products, National Pension Schemes, Corporate Deposits, Bonds, Mutual Funds. Investdirect also has a wholly owned subsidiary Moneymap Investment Advisors Pvt Ltd ("Moneyfront") which operates as investment advisor and hold license issued by SEBI. Moneyfront is a wealth management platform which assists clients in investing in direct plans of mutual funds as well as other equity and fixed income instruments. InvestDirect was incorporated on 25th July 2015 and has presence in India. InvestDirect has earned income of Rs. 0.02 Lacs and Rs. 2.47 Lacs for the financial years ended 31st March 2016 & 31st March 2017 respectively.
Pursuant to the acquisition, there will be synergy in the businesses operated and managed by the Company and InvestDirect. The Company shall, through InvestDirect, will be able avail the benefits of: (a) the tested wealth management platform, and (b) customer acquisition experience & existing clients of InvestDirect. The Company will be able to provide (a) technology and data services infrastructure, and (b) access to physical distribution channel.
The Board of Directors have accorded in-principle approval to enter into a preliminary exclusive deal with respect to the abovementioned acquisition, subject to completion of due diligence and obtaining regulatory and other approvals as maybe required pursuant to the applicable legal provisions. The Board has authorized the Company's management to (i) appoint requisite intermediary and advisors and (ii) evaluate the investment. The consummation of the aforesaid transaction depends upon the parties receiving the respective approvals and execution and closing of definitive documents.
Shares of Niyogin Fintech Ltd was last trading in BSE at Rs.137.8 as compared to the previous close of Rs. 142.2. The total number of shares traded during the day was 1776 in over 35 trades.
The stock hit an intraday high of Rs. 142 and intraday low of 136. The net turnover during the day was Rs. 247222.