National Company Law Tribunal passed an order to liquidate Skava Pvt., a wholly owned subsidiary of Infosys Ltd., according to an exchange filing from the parent company. The firm was dissolved effective from Nov. 14. Infosys received a certified copy of the order on Nov. 28.
Its net worth was Rs 2.72 crore as of March 31, 2024.
Infosys previously had plans to sell the e-commerce firm in 2019 but had it declassified as "held for sale." The software company instead opted to repurpose the firm's business as they didn't expect a sale to materialise in the expected time period.
Together, these assets amounted to Rs 2,060 crore (or $316 million), and liabilities amounted to Rs 324 crore ($50 million).
The company had initially acquired the firm for $120, along with Israeli firm Panaya, in 2015. This reclassification reportedly impacted their margin by $12 million.
Their operating margin had fallen 40 basis points due to additional depreciation and amortisation following this reclassification.
There was a recognised reduction of Rs 451 crore in the carrying value for Skava, including Rs 358 crore towards goodwill and Rs 93 crore towards the value of customer relationships.
Shares of Infosys Ltd. closed 3.53% lower at Rs 1,856.65 apiece on the NSE, compared to a 1.49% decrease in the benchmark Nifty 50.
The stock has risen 21.02% on a year-to-date basis and 28.7% over the past 12 months.
The stock was at a 3.79% intraday low of Rs 1,851.65.
Out of the 48 analysts tracking the company, 32 have a 'buy' rating on the stock, 10 suggest a 'hold,' and six recommend a 'sell,' according to Bloomberg data.
The average of 12-month analysts' consensus price targets implies a potential upside of 11%.
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