Infosys keen to transfer Finacle, Edge to subsidiary

Besides, the company has sought nod from shareholders for issuing bonus in the ratio of 1:1

India's second largest IT firm Infosys has sought shareholders' approval to transfer its Finacle and Edge Services businesses to the subsidiary Edgeverve Systems for a total consideration of up to Rs 3,620 crore (Rs 36.2 billion).

The IT services major is looking to enter into a contract "to sell, lease, transfer, assign or otherwise dispose of the whole or part" of the two businesses.

Transfer of Finacle businesses would be for an estimated consideration of Rs 3,400 crore (Rs 34 billion) while that of Edge Services would be for about Rs 220 crore (Rs 2.2 billion), according to postal ballot notice send by Infosys to its shareholders.

Once the shareholders' approval is in place, separation of these businesses would be effective from August 1 this year or any date decided by the company's board of directors.

EdgeVerve's products and platforms are used globally across diverse sectors including financial services, retail manufacturing, and telecom.

Besides, the company has sought nod from shareholders for issuing bonus in the ratio of 1:1 and also for increasing its authorised share capital.

Infosys's authorised share capital is to be increased to Rs 1,200 crore (Rs 12 billion) from Rs 600 crore (Rs 6 billion), according to the postal ballot notice.

Shareholders have time till June 3 to submit the postal ballots.

Infosys saw its net profit climb nearly four per cent to Rs 3,097 crore (Rs 30.97 billion) in the quarter ended March 31, 2015. It had a net profit of Rs 2,992 crore (Rs 29.92 billion) in the same period a year ago.

In the latest March quarter, revenue rose 4.2 per cent to Rs 13,411 crore (Rs 134.11 billion) from Rs 12,875 crore (Rs 128.75 billion) in the year-ago period.

Meanwhile, Infosys, on Thursday, said it has partnered software giant Microsoft to offer the latter's Finacle solution on the cloud.

Making the Finacle suite of banking solutions available on Microsoft Azure platform will allow banks to operate at lower costs and with greater agility, Infosys said in a statement.