Infibeam gets RBI nod for FII investment up to 49 percent

While online marketplace Infibeam has received a green signal from RBI for FII investment of up to 49 percent, market regulator Sebi has sought clarification from the merchant banker of the firm regarding its proposed IPO. Infibeam filed a draft red herring prospectus with the BSE and the NSE in June to raise Rs 450 crores.

After hearing from the merchant bank, Sebi might issue observations on the draft offer documents within 30 days. Infibeam aims to invest Rs 230 crores in developing a cloud-based data centre at the Gujarat International Fin-Tec City (GIFT).

Infibeam's annualised revenues for FY15 are estimated to be at Rs 290 crores, 39 percent higher than Rs 208 crores in FY14. While losses have reduced from Rs 26 crores in FY14 to Rs 9.6 crore in the first nine months of FY15, it is just about at breakeven at the operational level from a loss of Rs 19 crores in FY14. For the nine months ending December 31, 2014 the company has had cash and bank balances of Rs 63 crores from Rs 4.4 crore in FY14.