Info Edge share price trades with marginal gains after arm initiates forensic audit in 4B Network
1 min read 02 Jun 2023, 09:42 AM ISTInfo Edge's share price saw marginal gains after initiating a forensic audit into Rahul Yadav-backed proptech firm 4B Networks, following a write-down of its investment.
PremiumInfo Edge share price saw marginal gains on Friday's early trade after the company's arm initiated a forensic audit into Rahul Yadav-backed proptech firm 4B Networks. This came after the company's arm Allcheckdeals India wrote down all of its investment in the 4B Networks, which it had made, because it had not received the requested financial information. Info Edge shares opened at ₹3815.05 apiece on BSE.
The company stated in a filing with the exchanges that its wholly owned subsidiary company Allcheckdeals India invested in and occasionally provided finance to 4B networks totalling ₹288 crore, of which ₹276 crore was invested in shares and ₹12 crore was debt financing.
The company's arm has appointed Deloitte Touche Tohmatsu India LLP as the forensic auditor, who will be supported and assisted by Saraf and Partners Law.
Allcheckdeals had asked 4B Networks and its current management for information, ‘including details and particulars of financial transactions, transactions with related parties, and such other aspects,’ which 4B Networks is contractually required to provide but has not, Info Edge stated in the exchange filing.
"However, 4B Networks has repeatedly failed to provide Allcheckdeals with such information and has also not responded to the information requests by the company on several occasions," added the company.
As a result, Allcheckdeals India has exercised its contractual rights under the shareholders' agreement and articles of association of 4B Networks and, in accordance with those rights, is initiating a forensic audit into the affairs of the investee company, i.e., 4B Networks.
On the technical front, the stock has rose 4.3% and outperformed its sector by 2.1% in the past year.
According to analysts, the stock after a initial gap down, prices have smartly bounced back and are now trading in positive territory, if price continue to hold this gains then further traction can be expected towards 4,400, whereas 4,100 is the support.
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