1. Geometric shares surge over 18 per cent to hit 52-week high

Geometric shares surge over 18 per cent to hit 52-week high

IT firm Geometric shares touched a 52-week high of Rs 231.80 after HCL Technologies announced that it has signed an agreement to acquire all the business of the company in an equity swap deal.

By: | Updated: April 4, 2016 4:28 PM
Geometric shares IT firm Geometric shares touched a 52-week high of Rs 231.80 after HCL Technologies announced that it has signed an agreement to acquire all the business of the company in an equity swap deal. (Express Photo)

IT firm Geometric shares surged over 18 per cent on Monday to touch a 52-week high of Rs 231.80 after HCL Technologies announced that it has signed an agreement to acquire all the business of the company in an equity swap deal.

At 10.17 am, shares of the company were trading 17.27 per cent up at Rs 229.85 on BSE. The scrip opened at Rs 229.90 and has touched a high and low of Rs 231.80 and Rs 221.80 in trade so far. Later, the scrip settled the day 19.39 per cent up at Rs 234.

So far, around 10.23 lakh shares of Geometric exchanged hands on the BSE as compared with two-week average daily volume of 2.46 lakh shares.

Mumbai-based Geometric is a product life cycle management consulting, mechanical engineering and manufacturing engineering services providers.

HCL will issue 10 equity shares of Rs 2 each to Geometric shareholders for every 43 equity shares of Geometric of Rs 2 each held by them, the company said in a statement. In total, HCL will issue 15,640,546 equity shares of Rs 2 each.

The acquisition strengthens HCL’s presence significantly in the PLM consulting as well as mechanical and manufacturing engineering space. It also significantly strengthens HCL’s automotive and industrial practices.

The business, that HCL is acquiring, is one of the largest acquisitions in the engineering services space, the statement said, adding that Geometric has more than 60 global clients in the US and Europe, majorly in automotive and industrial engineering segments.

As of December 2015, Geometric employed 2,606 people across 13 global delivery locations in the US, France, Germany, Romania, India and China.

For the fiscal years ended March 2014 and March 2015, revenues of Geometric were Rs 787.12 crore and Rs 813.93 crore respectively.

  1. N
    Niveza India
    Apr 4, 2016 at 11:18 am
    #Niveza #Review: As the IT giant HCL Technologies announced its agreement to acquire entire business of the IT firm Geometric, share price of Geometric surged 52 week high, gained more than 19 percent in a single day. Considering the total number of clients Geometric Ltd having globally, the deal is considered to be worth for HCL. Definitely, the range of the clients Geometric was having is going to help HCL to enhance the expansion pace indeed.
    Reply
    1. N
      Niveza India
      Apr 5, 2016 at 6:59 am
      #Niveza #Review:Indian markets witnessed continued buying interest from the insutional investors in line with the other emerging markets. Meanwhile, the government permitted 100 per cent FDI in the market place format of e-commerce retailing with a view to attract more foreign investments. The major event this week is a monetary policy review from the Reserve Bank of India (RBI). The RBI will announce the First Bimonthly Monetary Policy Statement, 2016-17 at 11:00 IST on Tuesday, 5 April 2016. Market expectations are that the RBI will cut its benchmark lending rate viz. the repo rate by at least 25 basis points on 5 April 2016, with the government sticking to its fiscal deficit target for year 2016-17 in the Union Budget 2016-17 on 29 February 2016. The government's announcement of a reduction in interest rates on small savings schemes for Q1 June 2016 and dovish comments from US Federal Reserve Chairwoman Janet Yellen have reinforced market expectations of a rate cut from the RBI. After that, the next major trigger for the market is Q4 March 2016 results.
      Reply

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