Infibeam plans to foray in payments bank biz, raise Rs 2,000 cr

E-commerce firm Infibeam said it will seek shareholders approval on June 28 to expand business in IT segment, set up a payments bank and raise Rs 2,000 crore.

The company has proposed to change name from Infibeam Incorporation Limited to "Infibeam Avenues Limited". In a notice for the extra ordinary general meeting to be held on June 28, 2018, it said, "To apply for authorization from Reserve Bank of India for Payments Bank under Section 22 of the Banking Regulation Act, 1949...".

The company is also mulling to explore business opportunity in manufacturing of IT hardware.

The company plans to leverage its financial technology and expand business in the domain by seeking RBI permit to issue all kind of prepaid payment instruments e-wallets, co-branded wallets, and any other pre-paid payment instrument that the banking regulator may allow from time to time.

Infibeam's consolidated profit after tax more than doubled to Rs 88.1 crore in fiscal year 2018 from Rs 43.5 crore a year ago mainly on account of over three fold growth in its services business.

Infibeam will seek approval to expand business into full fledge software business including carrying its business in India and overseas, "with or without collaboration, the business as software engineers, software developers, software programmers, networking engineers, web designers, web development, application development, and integration,".

It plans to conduct all kind of business activities in software across all field including video conferencing, telecommunication, satellite communication software, radio communication, wireless communication etc. according to the notice.

Besides, Infibeam plans " to manufacture all kinds of hardware, plant, machinery, equipment, softwares, systems, used in the field of information technology".

The company will seek approval to raise " an aggregate amount not exceeding Rs 2,000 crores or its equivalent thereof, in one or more currencies".

Shares of Infibeam closed at Rs 162.15 a unit, down by 3.4 per cent compared to previous close, at BSE today.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)