Info Edge runs online classified businesses such as Naukri.com, 99acres.com, Jeevansathi.com, and Shiksha.
Analysts at Edelweiss Securities, in a report issued on June 23, had said that the QIP can be used for strategic acquisition to boost scale in some of the businesses. "With a few of its businesses struggling due to lockdown and lack of liquidity, this could be a good opportunity to acquire assets, especially in the real estate and matchmaking business to build scale," the brokerage had said.
"Info Edge remains one of the best-diversified internet franchise with strong execution and capital allocation track record. However, we maintain ‘HOLD/SP’ with the target price of Rs 3,015 due to the company's high dependence on businesses that are linked to economic recovery and expensive valuations (54.3x FY22E EPS for core business)," the brokerage added.
At 10:50 am, the stock was trading nearly 5.5 per cent higher at Rs 3,375 on the BSE. In comparison, the benchmark S&P BSE Sensex was trading 295 points or 0.78 per cent higher at 37,983 levels.