Intel Capital, the investment capital arm of Intel Corp, has exited Intrasoft Technologies by selling its remaining 5.3% stake in the company for Rs 29.2 crore ($4.4 million), reports VCCircle. Intrasoft is the parent company of 123greetings.
Interestingly, just last month, Intel Capital had reduced more than half of its stake in Intrasoft Technologies, and sold 750,000 shares or 5.09% of its stake in the company. Its stake was reduced to 784,764 shares or 5.33% in the company, which it has now sold off as well.
Prior to that, Intel was the largest institutional shareholder and the only Foreign Venture Capital Investor in Intrasoft, though the company has other Foreign Portfolio Investors. It had 10.42% stake in Intrasoft with 1,534,764 shares. Intel Capital had invested about Rs 20 crore in IntraSoft in December 2007 for a 16.3% stake. This stake had shrunk post an IPO in 2009.
Existing investors increase stake
According to the Hindu BL, The University of Norte Dame DU LAC bought 2.14 lakh shares and Washington University Chanakya Cap Partners bought 1.14 lakh shares of Intrasoft Technologies, last week. Note that as of March 31, 2016, they already held a 3.12% and 1.75% stake in the company, respectively.
Earlier share offloads
In February of this year, Intrasoft had raised Rs 34.5 crore by selling 1.2 million shares, to expand their e-commerce business. While in July last year, Intrasoft had raised $5.4 million by selling over a third of its treasury stock via bulk deals. It was reported, at the time, 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 has reported revenues of Rs 186.93 crore for the quarter ended March 31, 2016, up 85% from Rs 101.28 crore in the corresponding quarter last year. The company posted net profits of Rs 33.44 crore. For the year ended March 31, 2016, the company reported total revenue of Rs 717.73 crore, up 109% from Rs 343.33 crore revenues reported in the previous year.