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3IINFOLTD · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
3i Infotech's Board has approved initiating bankruptcy proceedings for its Saudi subsidiary, 3i Infotech Saudi Arabia LLC. The move comes after the company was unable to pay outstanding withholding and income tax of around Rs. 25.7 crore (SAR 1.14 crore) owed to the Saudi tax authority (ZATCA) for financial years ending March 2008, 2009, 2010, and 2019. The subsidiary had defaulted on an approved Amnesty Scheme instalment plan, paying only for April and May 2024. Earlier in January 2025, the Board had approved voluntary liquidation, but legal advisors have now advised that liquidation is not feasible under Saudi law, leading to the bankruptcy route. The subsidiary contributed 4.14% of FY25 turnover (Rs. 30.08 crore) and has a negative net worth of Rs. 96.26 crore, and is not classified as a material subsidiary. Completion of the bankruptcy process is expected by March 31, 2026.
Limited impact on shareholders since the Saudi unit is not a material subsidiary and contributes only ~4% of revenue. However, the negative net worth and outstanding tax liabilities indicate the subsidiary was already a drag, and bankruptcy should help contain further losses. Investors should watch for any unexpected claims or costs emerging from the Saudi proceedings.