Shares of Info Edge Ltd opened 9% lower on June 2 but quickly recovered and edged higher. The company said the Rs 280 crore loan to 4B Networks from its subsidiary Allcheckdeals India Private Ltd (AIPL) is fully impaired, suggesting recovery of the loan amount is unlikely.

In the opening trade, the stock touched a low of Rs 3,815.05 on the BSE, down as much as 9.5%. However, the stock recovered quickly and was trading at Rs 4,233 on the BSE, up 0.42% from its previous close.

Info Edge also announced its decision to conduct a forensic audit of 4B Networks, a proptech startup backed by Rahul Yadav. The move comes a quarter after Info Edge wrote down its entire investment in the company due to a lack of financial information.

Rahul Yadav, best known as the founder of Housing.com before a contentious rift with investors led to him leaving the company, worked with Anarock before launching 4B Networks.

Given the above challenges, AIPL has formally requested various information from 4B Networks and its current management. This includes specific details about financial transactions, transactions involving related parties, and other relevant aspects. However, Info Edge said 4B Networks has been unable to provide the requested information and remains unresponsive to multiple information requests from AIPL.

For the fourth quarter ended March 2023, the company reported a consolidated loss of Rs 503.19 crore, compared to a net profit of Rs 719.51 crore a year ago. However, operating income showed positive growth, rising 28% to Rs 604.78 crore in the fourth quarter compared to Rs 472.94 crore last year.

Managing Director and Chief Executive Officer Hitesh Oberoi acknowledged that a slowdown in IT hiring had impacted billing growth. Still, he was pleased with the performance of the company’s non-recruiting business, noting overall economic strength outside of the IT industry.