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Intrasoft Technologies raises $5.4M by sale of 670,000 shares: Report

greeting cards

Intrasoft Technologies, the parent of 123greetings, has raised $5.4 million by selling over a third of its treasury stock (Intrasoft Beneficiary Trust) via bulk deals, reports VCCircle. According to the report, it sold 670,000 shares at Rs 510 per share, which were apparently bought by small brokerages and private investment firms from Kolkata and Mumbai. The company will use the proceeds to expand and grow its ecommerce activities.

Intrasoft Beneficiary Trust was created 8 years ago, as a part of a merger of a subsidiary with Intrasoft Technologies, before Intrasoft Technologies went public in 2010. The quantum of treasury stock consisted of 1,750,000 shares, which were 11.88% of the company’s equity base. SMIFS Capital Markets was the investment banker in the transaction.

Q1 FY16 revenues: Intrasoft Technologies reported revenues of Rs 118 crore for the quarter ended June 30, 2015, up 97% from Rs 59.78 crore in the same quarter last year. Revenues also grew by 16.5% Q-o-Q, from Rs 101.28 crore in the previous quarter. The company reported revenues of 343.33 crore for FY15, up 129.5% from Rs 149.54 crore in FY14.

Overall, the company reported a profit of Rs 1.22 crore, up by 47% from Rs 0.83 crore in the corresponding quarter last year. However, profits were down steeply by 79.5% from Rs 5.96 crore in the previous quarter.

The company’s online gifting e-commerce business 123Greetings Store also witnessed a significant growth on a yearly basis: It shipped 0.294 million orders for the quarter, nearly two and half times the 0.116 million orders it shipped in the same quarter last year. In the previous quarter, the company had shipped 0.253 million orders.

Greetings business: 123Greetings.com reported that the number of cards sent through its platform in Q1-FY16 stood at 0.37 million, up 117.6% from 0.17 million cards sent in the same quarter last year. The e-greetings business reported revenues of Rs 4.37 crore for the quarter. The platform had launched its iOS and Android apps in Q3-FY14.

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The company claims to offer over 42,000 multimedia e-greeting cards in different languages, covering over 3,000 categories. Backed by Intel Capital, which owns 12.20% stake, the company said that it has over 200,000 products on sale on its website sourced from 1,300 brands. It also said that it is adding 10,000 new products every month.

Image Credit: Flickr user Fran Meneses

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