Yudiz Says HDFC Bank Has Unfreezed Its Account With IPO Proceeds

SUMMARY

Yudiz said it received a confirmation from HDFC Bank that the freeze on the company's bank account has been lifted

The development comes more than a month after Yudiz said that HDFC Bank had frozen its bank account in which it saved its IPO proceeds

The startup, listed on NSE Emerge, went public in August last year after raising over INR 44 Cr via its IPO

Blockchain and IT development startup Yudiz Solutions said HDFC Bank has unfreezed its bank account in which it stashed its IPO proceeds.

In an exchange filing on Wednesday (June 19), Yudiz said, “… we would like to inform you that the Bank has unfreezed the company’s bank account held with them. We have received confirmation from the Bank that the freeze on the company’s bank account has been lifted.”

The development comes more than a month after Yudiz said that HDFC Bank had frozen its bank account in which it saved its IPO proceeds.

In an exchange filing on May 10, Yudiz said the account was blocked as the bank claimed that Yudiz did not comply with internal standards.

“Nevertheless, the company has complied with every single bank obligation. Despite all attempts for unfreezing of the said bank account, the company at last issued a legal notice on bank for unfreezing of their bank account. The company is currently seeking legal recourse to resolve the issue and ensure the unfreezing of their bank account,” the filing said.

Founded in 2011, Ahmedabad-based Yudiz specialises in web and mobile app development. It also provides services in areas of emerging technologies such as AR/VR, AI/ML, blockchain, and IoT.

The startup listed on NSE Emerge in August last year at a 12% premium to its issue price of INR 165. The startup raised INR 44.84 Cr from the public issue, which comprised a fresh issue of 27,17,600 equity shares.

Its IPO received bids for 92.91 Lakh shares as against 19.57 Lakh shares on offer, resulting in an oversubscription of 4.75X.

Yudiz planned to utilise the IPO proceeds to develop new products, technology and marketing. It also aimed to use the funds for acquisitions in India and abroad, capital expenditure, and meeting working capital requirements.

Yudiz posted a net loss of INR 2.9 Cr in the financial year 2023-24 (FY24) as its revenue tanked in the second half of the year. It had posted a net profit of INR 2.7 Cr in FY23. Operating revenue declined 4% to INR 26.1 Cr in FY24 from INR 27.3 Cr in the previous fiscal year.

Shares of Yudiz ended Thursday’s trading session 0.6% higher at INR 70 on NSE Emerge.