Affle India board meet on Wednesday to consider fund raising for inorganic growth

Affle (India) Ltd. on Sunday announced that the company’s board of directors will meet on December 14 to consider fundraising through a preferential issue of shares or any other equivalent method.

Affle, a company engaged in providing mobile advertisement services through information technology and software development services, reported strong growth in the September quarter backed by robust device addition and healthy international business.

The company’s revenue stood at Rs 355 crore in the September quarter, up 29.1 percent compared to the same period a year ago. Net income stood at Rs 59 crore, reporting a healthy growth of 39.6 percent year-on-year.

During the results announcement, the management gave a revenue growth guidance of 25-30 percent CAGR (compounded annual growth rate) over the next five years considering robust demand and rising mobile consumption.

After the results, brokerage firm Axis Direct in a report dated November 10 issued a ‘BUY’ rating on the Affle (India) stock with a target price of Rs 1,350 per share.

Over the past year, the stock has gained nearly 9.5 percent compared to a 5 percent rise in the benchmark Sensex during the same period.