Infibeam Avenues Ltd, the parent of payment gateway CCAvenue, has divested a 51% stake in its logistics arm to a Gujarat-based retail chain.
In a stock-exchange filing, Infibeam said it has agreed to sell the stake in Infibeam Logistics Pvt. Ltd to Osia Hyper Retail Ltd for Rs 19 crore ($2.58 million at current exchange rates).
Ahmedabad-based Osia – set up in 2014 – operates at least 13 stores across the state. It retails fast-moving consumer goods, apparel, home furnishings, appliances, handicraft and other products.
Infibeam said the logistics arm accounts for 2.78% of its consolidated turnover and 1.2% of its net worth. It expects the sale of this unit to Osia to be completed by November 15.
Osia is promoted by Dhirendra Gautamkumar Chopra, who is its managing director, and executive director Kavita Dhirendra Chopra. According to its annual report for 2019-20, the two along with the rest of the company’s promoter group hold a 62.99% stake. The company posted total revenue of Rs 343.89 crore for 2019-20 and a profit after tax of Rs 8.46 crore.
Shares of Infibeam Avenues were trading 1.35% up at Rs 75.25 apiece around noon on Thursday. The company posted consolidated net sales of Rs 648.09 crore for 2019-20 and a net profit of Rs 57.06 crore.
Founded in 2010 by former Amazon executive Vishal Mehta, Infibeam started primarily as an e-commerce firm but pivoted its business model subsequently. In March 2016, it became one of the youngest firms to list on the bourses after floating its initial public offering.
In June, the company acquired Bengaluru-based Cardpay Technologies Pvt. Ltd, a corporate credit card issuing firm that was floated just two months prior.