eMudhra (EMUDHRA) Investor update summary

Background and context

• Allegations were raised by 3i Infotech regarding the 2010 divestment of a subsidiary and redemption of preference shares, with claims of undervaluation, conflict of interest, and financial fraud, with a claimed impact exceeding ₹128 crores plus interest and damages.

• The divested entity was originally a wholly owned subsidiary, later acquired by Indus Innovest, with Srinivasan continuing as non-executive chairman until 2014.

• The divestment was based on a Deloitte valuation report, with the sale price exceeding the valuation, and the board included several eminent, independent members.

• The allegations pertain to events approximately fifteen years old, with none of the relevant management still at 3i Infotech Limited.

Details of allegations and responses

• Allegations include claims of undervaluation, misrepresentation, lack of board disclosure, and improper handling of INR 25 crore preference share redemption; Srinivasan refutes these, citing process integrity, board independence, and compliance with agreements.

• All transactions were documented, with evidence of payments, share redemptions, and board approvals available.

• All allegations are strongly denied and described as false, baseless, without merit, and time-barred.

• Detailed responses were provided to 3i Infotech Limited in 2024 and 2025, with offers for document inspection that were not reciprocated.

Timeline and management changes

• The allegations are being raised by new management at 3i Infotech, years after the original events, following a change in ownership and leadership.

• Previous management did not object to the transactions, and the new team initiated a review and complaint after forming a committee.