Yudiz To Pick Up 51% Stake In Tech Solutions Company ABCM App

Listed blockchain and IT development company Yudiz Solutions will be picking up 51.01% stake in Mumbai-based consultancy and technology solutions company ABCM App Private Limited for INR 6.14 Cr. 

The company said in an exchange filing, “We hereby inform you that the meeting of board of directors of the company held today i.e. on Thursday (August 29) to inter-alia considered and approved the acquisition of 51.01% equity stake in ABCM App Private Limited by entering into Share Subscription Agreement and Shareholders’ Agreement.”

With this pact, Yudiz aims to strengthen its market position and leverage ABCM’s network and existing business.

As a part of the deal, Yudiz bought 67,447 shares at INR 574 per share from ABCM’s existing non-promoter shareholders, costing INR 3.87 Cr.

After buying these shares, Yudiz will also subscribe to 89,853 additional equity shares of ABCM at INR 253 a piece, totalling INR 2.27 Cr. 

The indicative period for completion of the acquisition is 45 days.

ABCM has 25 shareholders and Fetuz Hatcher Private Limited is one of them with a 4.27% stake in the company which is also selling its shares under the acquisition deal to Yudiz. 

Notably, Yudiz’s chairman Bharat Patel and managing director Pratik Patel, along with their relatives, own 85% of Fetuz Hatcher Private Limited.

Following the deal, shares of Yudiz were 4.98% up on NSE during the Friday’s trading session at 1:50 PM.  

Founded in 2019, ABCM App is a SaaS startup specialising in the design and development of financial software and mobile applications. 

In FY24, ABCM App claims to have earned INR 81.58 Lakh in revenue. 

Meanwhile, Ahmedabad-based Yudiz Solutions, founded in 2011, specialises in web and mobile app development while providing services in areas of emerging technologies such as AR/VR, AI/ML, blockchain and IoT. 

It made its shares debut on the NSE SME platform in August last year at over a 12% premium at INR 185 apiece from its issue price of 165 per share.

On the financial front, Yudiz slipped into the red in FY24 with a net loss of INR 2.9 Cr, hurt by a slump in its revenue in the second half (H2) of the fiscal year and a sharp surge in employee cost.

Meanwhile, its operating revenue also declined to INR 10.3 Cr in H2 from INR 15.9 Cr in H1 FY24. On a YoY basis, operating revenue saw a 37.2% decline in H2 FY24.

During FY24, Yudiz’s total expenses surged 31.5% to INR 31.3 Cr from INR 23.8 Cr in the previous year. In that, it spent INR 20.4 Cr towards employee benefit expenses, a rise of 21.4% YoY.

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