Intrasoft Technologies, the parent of 123greetings, has raised Rs 34.5 crore by selling 1.2 million shares at a rate of Rs 288 per share, the company informed the BSE. The company will use the funds for expansion and growth activities related to its ecommerce business.
The entire number of equity shares held by the Intrasoft Beneficiary Trust has been sold and now the Trust does not hold any further shares of the Company.
Interestingly, in July last year, Intrasoft raised $5.4 million by selling over a third of its treasury stock via bulk deals. It was reported then that the company 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 said then it would 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. SMIFS Capital Markets was the investment banker in the transaction.
Q3 FY16 revenues: Intrasoft Technologies reported revenues of Rs 258.54 crore for the quarter ended December 31st, 2015, up 111% from Rs 122.63 crore in the same quarter last year. The company reported revenues of 530.8 crore for nine month ended FY15, up 119% from Rs 242.05 crore in FY14.
Overall the company reported a profit of Rs 5.17 crore for the quarter, up by 25% from Rs 4.15 crore in the corresponding quarter last year.
The company’s online gifting e-commerce business 123Greetings Store also witnessed a significant growth on a yearly basis: It shipped 0.767 million orders for the quarter, over two and half times the 0.285 million orders it shipped in the same quarter last year. In the previous quarter, the company had shipped 0.377 million orders. Overall the ecommerce revenues increased by 115% from Rs 117.56 crore to Rs 252.65 crore during the quarter.
Greetings business: 123Greetings.com reported that the number of cards sent through its platform in Q1-FY16 stood at 0.44 million. The e-greetings business reported revenues of Rs 5.89 crore for the quarter. The platform had launched its iOS and Android apps in Q3-FY14. It claims to offer over 42,000 multimedia e-greeting cards in different languages, covering over 3,000 categories.
Image Credit: Flickr user Fran Meneses