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Tuesday, November 21, 2006

Info Edge India impresses on debut


Info Edge India was trading at Rs 574.45, a massive premium of 79.5 over the IPO price of Rs 320.

The company priced the IPO at the upper end of the Rs 290 - Rs 320 band. The public offer had received strong investor response. Post issue FII-holding in the stock is 7.9% wheread promoters own 54.6%. The company has a paid-up equity of Rs 27.29 crore.

The current price of Rs 574.45 discounts its Q1 June 2006 annualised EPS of Rs 7.70 (based on consolidated financials), by a PE multiple of a whopping 74.6.

Info Edge (India) is a leading provider of online recruitment and matrimonial classified and related services in India. Its online recruitment portal Naukri.com is currently India’s number one website for online recruitment services and its matrimonial portal Jeevansathi.com is presently India’s number third for online matrimonial classified services, in terms of number of unique visitors to the website, as per data provided by Comscore.

The online advertising market has grown from Rs 42 crore in FY 2004 to Rs 107 crore in FY 2005. This is expected to grow to Rs 162 crore in FY 2006 and reach Rs 218 crore in FY 2007 (Source: Internet and Mobile Association of India, IAMAI).

For Q1 June 2006, Info Edge reported a consolidated net profit of Rs 5.22 crore on revenue of Rs 27.92 crore. For FY 2006 (year ended 31 March 2006), it earned a net profit of Rs 13.29 crore on revenue of Rs 82.41 crore.

Info Edge (India) is currently over-dependant on recruitment services. Naukri.com contributed 93.47% (94.6% in FY 2006) of the operating revenue in the quarter ended June 2006.