Reliance Industries has shown interest in buying a majority stake in Ahmedabad-based financial technology company Infibeam Avenues. According to market sources, the two companies have already signed an agreement to set up a retail payment system and now Reliance is preparing to buy a majority stake in Infibeam Avenues through its subsidiary Jio Platforms. However, Infibeam Avenues denied the deal. The current valuation of Infibeam Avenues is over Rs 6,000 crore.
Infibeam does not wish to comment on this at the moment.
In a conversation with the daily, Vishal Mehta, Managing Director of Infibeam Avenues, termed this deal as a rumour, saying that it is just a discussion going on in the market. He further said that yes it is true that we are working on many projects with Reliance. We are a public listed company, so cannot comment much on this.
Infibeam has more than 3 million merchants
Talking about Infibeam Avenues, as a financial technology company, Infibeam currently has more than 3 million merchants associated with it. In the financial year 2020-21, there was a transaction of about Rs 1.40 lakh crore through the payment gateway of the company. The company’s gross revenue this year was around Rs 676 crore.
Jio-Infibeam partnered to build a payment network
Recently, Reliance Platforms and Infibeam applied for a license for a New Umbrella Entity (NUE) from the Reserve Bank of India to set up the Avenues Payment Network. Google, Facebook, Reliance Jio and Infibeam join hands to capitalize and grow the growing digital payments space in India.
Infibeam stock rises sharply
After this news, the stock of Infibeam Avenues is seeing a great rise. Shares on the Bombay Stock Exchange i.e. BSE are trading with a gain of more than 10%. Its shares closed at Rs 41.75 on October 1, which has crossed Rs 50 today. While the market cap of the company has reached Rs 6,926 crore.
infibeam avenues movement of shares of
Reliance is now in the mood to buy companies
Recently, on October 10, Reliance New Energy Solar Limited, a wholly owned subsidiary of Reliance Industries Limited, acquired Norway’s REC Group for Rs 5,792 crore. Similarly, Shapoorji Pallonji & Company Private Limited (SPCPL), Khurshed Daruwala and Sterling & Wilson Solar Limited (SWSL) have bought 40% stake for about Rs 2,845 crore. Let us tell you, both these deals were done in the same day. According to experts, Reliance Group is in the mood to take stake in other companies in the coming days.