Intel Capital, the investment firm of Intel Corp, has reduced more than half of its stake in Intrasoft Technologies, and sold 750,000 shares or 5.09% of its stake in the company. Intrasoft is the parent company of 123greetings.
According to the BSE filing, Intel has brought down stake was reduced to 784,764 shares or 5.33% in the company. Earlier, it had 10.42% stake in Intrasoft with a total 15,34,764 shares. According to the shareholding pattern of Intrasoft, Intel Capital is the only Foreign Venture Capital Investor in the company, though they do have other Foreign Portfolio Investors. Before this sale, Intel was the largest institution shareholder.
In February, Intrasoft had raised Rs 34.5 crore by selling 1.2 million shares, to expand their e-commerce business.
Interestingly, in July 2015, 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 e-commerce activities.
Financials: Intrasoft Technologies had reported revenues of Rs 258.54 crore for the quarter ended December 31st, 2015, up 111% in comparison to the same quarter last year. It had also reported revenues of Rs 530.8 crore for the nine month period ending December 31st, 2015. Overall the company reported a profit of Rs 5.17 crore for the quarter, up by 25% from the corresponding quarter the previous year.
New company in US: Intrasoft had set up a new company in the US for its e-commerce operations, called 123Stores Inc. in Q2 FY15. During the quarter, the company formed a subsidiary in India under the name of 123Stores E Commerce Pvt. Ltd. to increase focus on the ecommerce business by consolidating all operations related to ecommerce under 123Stores, Inc. to increase financial and operational efficiencies.