Diginex Equity Faces Dilution Amid Strategic Acquisition

Diginex is undertaking a profound strategic shift, but the financing method for its latest move has unsettled investors. The company's acquisition of Berlin-based ESG specialist PlanA.earth brings influential new shareholders on board, including Visa and Deutsche Bank. However, the deal's structure, which heavily relies on issuing new stock, triggered a significant sell-off, sending the share price down to €3.25 in Wednesday's trading session.

Market observers note a crucial silver lining within the transaction's framework. The willingness of financial giants Visa and Deutsche Bank to accept Diginex shares as payment for their stakes in PlanA.earth is seen as a strong endorsement of the acquiring company's technology platform. This move aggressively positions Diginex within the sustainability software and carbon accounting sector, a market analysts project could reach $80 to $100 billion by 2030.

Operational momentum appears to support this ambition. For the first half of its fiscal year ending September 2025, Diginex reported a 293% surge in revenue, which climbed to $2.0 million.

Should investors sell immediately? Or is it worth buying Diginex?

Deal Financing Weighs Heavily on Share Price

The acquisition's total consideration of approximately €55 million represents a bold growth bet. The primary pressure on the equity value stems from how it is funded. Only €3 million will be paid in cash. The substantial balance of €52 million will be settled through the issuance of more than 6.72 million new Diginex shares.

This capital measure results in a considerable dilution of existing holdings. The market promptly factored in this effect, which explains the recent downward price movement.

Acquisition Key Details:

• Target Company: PlanA.earth GmbH, based in Berlin.
• Total Transaction Value: Approximately €55 million.
• Share-Based Payment: 6,720,317 new Diginex shares (valued at ~€52 million).
• Incoming Major Shareholders: Visa and Deutsche Bank.
• Notable New Clients Gained: Includes BMW, Coca Cola, and HSBC.

The path forward for Diginex's stock now hinges on the market's capacity to absorb the large influx of new shares. Attention is firmly on upcoming quarterly reports, which must demonstrate that the synergies from integrating PlanA.earth will, over the medium term, more than offset the negative impact of the dilution.