Why Info Edge Shares Hit 52-Week High

Info Edge India shares gained over 4 per cent to hit fresh 52-week high of Rs 1,015 on Wednesday on hopes of higher valuation for its subsidiary 99acres.com.

Property portal 99acres.com's rival Housing.com bagged an investment of $70 million dollar from Japan's SoftBank which acquired 30 per cent stake. According to estimates, this values Housing.com at around $250 million (Rs 1,500 crore at Rs 60 a dollar).

Housing.com, launched two years ago by a team of engineers from IIT Bombay, is the fourth largest property portal in India in terms of traffic share value.

Analysts say this is a positive develepoment for Info Edge as its subsidiary 99acres.com can fetch much higher valuation, being the second largest property portal in terms traffic share in India.

In another development, Info Edge has committed to make an additional investment of about Rs 185 crore in Zomato Media Private Ltd, which owns and operates an online food guide portal www.zamato.com.

Info Edge would be investing along with two other investors in this round of funding which aggregates to Rs 370 crore. With this additional investment Info Edge's total investment in the company would be about Rs 327 crore, which indicates a shareholding of 50.1 per cent. The Street values Info Edge's Zamato stake at Rs 46 per share.

Info Edge shares ended 1.3 per cent higher at Rs 960 apiece, outperforming the broader Nifty closed 0.52 per cent lower on Wednesday.