Info Edge (India) Limited , a prominent player in the Indian internet and technology space, has announced a significant move that could reshape its investment portfolio. The company's board has given the green light for a partial divestment of its stake in NoPaperForms Solutions Limited, paving the way for the subsidiary's initial public offering (IPO).

Key Highlights of the Announcement

• Info Edge's wholly-owned subsidiary, Startup Investments (Holding) Limited (SIHL), will reduce its stake in NoPaperForms Solutions (also known as Meritto) to below 25% of the total paid-up capital.
• The divestment will be executed through a combination of an Offer for Sale (OFS) and dilution from primary issuance of equity shares by Meritto.
• SIHL plans to offer up to 38,422,392 equity shares of Meritto, each with a face value of ₹1.00, as part of the proposed IPO.

Divestment Strategy

The partial stake sale will be implemented through two primary mechanisms:

1. Offer for Sale (OFS): This includes the potential for pre-IPO secondary transfers and sale of equity shares prior to the filing of the red herring prospectus.
2. Dilution: This will result from the primary issuance of equity shares by Meritto as part of the proposed IPO.

Regulatory Compliance and Future Steps

Info Edge has emphasized that the proposed IPO, including the OFS component, is subject to several factors:

• Prevailing market conditions
• Receipt of necessary approvals from regulatory authorities
• Clearances from the Securities and Exchange Board of India (SEBI)

The company stated that Meritto will file the relevant offer documents with the appropriate authorities in due course.

Implications for Info Edge

This strategic move allows Info Edge to potentially monetize a portion of its investment in NoPaperForms Solutions while still maintaining a significant stake in the company. It also provides NoPaperForms Solutions with the opportunity to access public markets for future growth and expansion.

About NoPaperForms Solutions

NoPaperForms Solutions Limited, operating under the brand name Meritto, is a subsidiary of Info Edge. While specific details about the company's operations were not provided in the announcement, the impending IPO suggests that it has reached a stage of growth that warrants public investment.

As the IPO process unfolds, investors and market watchers will be keen to see how this partial divestment impacts Info Edge's financial position and how NoPaperForms Solutions performs as a standalone public entity.

Note: The proposed IPO is subject to market conditions and regulatory approvals. Investors are advised to follow official announcements for the most up-to-date information.

Info Edge (India) Limited , a prominent player in the Indian internet and tech space, has announced a significant investment in its wholly-owned subsidiary, Redstart Labs (India) Limited. The company's board of directors has approved an investment of approximately ₹100 crore in Redstart Labs, showcasing a strong commitment to expanding its tech portfolio.

Investment Details

The investment decision was made during a board meeting held on November 3, 2025. Here are the key details of the transaction:

About Redstart Labs

Redstart Labs, incorporated on July 7, 2020, is positioned as an investment vehicle for Info Edge in the tech sector. The subsidiary focuses on:

• Direct or indirect investments in tech companies
• Providing various Internet services
• Software development
• Consultancy and technical support for consumer companies and internet/SAAS providers

It's worth noting that Redstart Labs has not reported any turnover in the last three financial years, indicating its primary role as an investment entity rather than an operational business.

Strategic Implications

This substantial investment by Info Edge carries several strategic implications:

1. Capital Allocation: The funds are intended to meet Redstart Labs' capital requirements and explore new investment opportunities.

2. Tech Ecosystem Expansion: By channeling funds through Redstart, Info Edge is likely aiming to strengthen its position in the broader tech ecosystem.

3. Long-term Growth: The investment suggests Info Edge's commitment to long-term growth and diversification within the tech sector.

4. Subsidiary Development: Despite no reported turnover, Redstart Labs has shown positive financial indicators, with a reported Profit After Tax (PAT) of ₹1.36 crore and a net worth of ₹16.18 crore as of March 31, 2025.

Market Implications

While the investment represents a significant capital commitment by Info Edge, it's important to note that this is an internal transaction within the company's corporate structure. As Redstart Labs is already a wholly-owned subsidiary, this investment does not alter Info Edge's overall ownership but rather reinforces its commitment to its tech investment strategy.

Investors and market watchers will likely be keen to observe how this capital injection translates into new investments or developments within the Info Edge group, potentially impacting the company's future growth trajectory and market position in the competitive Indian tech landscape.

As the tech sector continues to evolve rapidly, Info Edge's strategic move through Redstart Labs underscores the company's proactive approach to capitalizing on emerging opportunities in the digital economy.