The Findi Ltd (ASX: FND) share price has been catching the eye on Wednesday after returning from a trading halt.
In morning trade, the ASX tech stock was up as much as 63% to a 52-week high of $1.30.
The digital payments and financial services provider's shares have pulled back somewhat since then, but remain up 38% to $1.10.
Why is this ASX tech stock rocketing?
Investors have been buying the company's shares today after it released an update on its Indian subsidiary, Transaction Solutions International (TSI) India.
According to the release, the subsidiary has raised $37.6 million via the placement of Compulsory Convertible Debentures (CCD) to leading Indian investment group, Piramal Alternatives.
The release notes that the entry equity valuation is based on an FY 2023 EBITDA multiple and reflects a pre-initial public offering (IPO) market capitalisation of $153 million ahead of TSI India's intended listing on the Bombay Stock Exchange (BSE).
This investment follows the recent announcement by Findi that it has locked in $550 million to $620 million of future revenue from a new ATM contract with the State Bank of India.
The ASX tech stock's chair, Nicholas Smedley, was very pleased with the news. He said:
The support of Piramal Alternatives demonstrates that Findi is an emerging institutional investment proposition. Piramal undertook extensive due diligence on TSI India before they made their investment which is a great endorsement for both our business plan and the sector outlook for Findi as a whole. Importantly, the backing of Piramal starts the clock on the anticipated listing of our Indian subsidiary on the BSE and gives us a significant war chest to accelerate our business plan through EPS accretive acquisitions.