Hyderabad-based Northgate Technologies, a public-listed Internet based technology company, is demerging its Internet businesses including a bouquet of online properties such as file hosting and sharing portal – Ziddu.com, social networking portal – Bharatstudent.com and Globe7, which provides online communication and ad network Axill.com.
These properties are being demerged into Northgate Com Tech Ltd., which will become a separate public listed company.
At the same time, the company will merge its subsidiary Green Fire Technologies with itself and rename the existing parent as Green Fire Agri Commodities Ltd. Green Fire is a commodity trading firm.
Bharatstudent.com and Ziddu.com are operated by Northgate’s subsidiary Social Media India Ltd, which clocked revenues of Rs 32 crore with net profit of Rs 5.76 crore for the year ended March 31, 2011. The VoIP business through three separate subsidiaries reported revenues of around Rs 18 crore but was into heavy losses in FY11 with net loss of around Rs 150 crore while AxiLL Europe Ltd clocked loss of Rs 40.5 crore.
Financials for FY12 are not yet available.
The demerger was planned over a year ago as a part of its restructuring to segregate the Internet and commodity trading operations from the rest of the businesses. The company said it is to bring more efficient and focused management on each segment and unlocking value for the shareholders.
This will make Northgate Com Tech Ltd yet another public listed consumer Internet services firm in India. Other such listed online ventures in the country include Info Edge (India), which runs Naukri.com among other sites besides IntraSoft Technologies which operates 123greetings.com. MakeMyTrip is listed on Nasdaq.