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.
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.