​Shares of Info Edge have jumped sharply. Know why

Info Edge (India) Ltd., an online website for jobs and real estate, jumped sharply in late afternoon trades on Wednesday after the Central Bank allowed foreigners to buy more stake in the company.

The Reserve Bank of India said overseas investors can now buy up to 50 percent stake in Info Edge via secondary markets, up from 40 percent earlier after the company's board passed requisite resolutions to that effect.

As a consequence, Info Edge rose 20.10 rupees, or 2.7 percent, to 769.95 rupees on the National Stock Exchange, where 73,000 shares were traded compared with the 5-day average of 1.72 lakh shares.

Info Edge has seen its market capitalisation remain flat at 9,300 crore rupees in the past one year. The stock trades at 5.5 times book value of 140 rupees.

Image credit: Indiatimes