Synopsis:
Shares of HOV Services locked at the 5 percent upper circuit after its US subsidiary entered a definitive agreement to acquire Aidéo Technologies, a leader in AI-powered autonomous medical coding. The Rs. 14.08 crore deal will make Aidéo a wholly owned subsidiary, strengthening HGM’s AI-driven healthcare platform in revenue cycle management.
An IT services stock hit the upper price band in Wednesday’s trade following news of its US subsidiary striking a strategic acquisition. Investor sentiment turned upbeat as the deal enhances the group’s position in AI-driven healthcare, a high-growth sector.
HOV Services Ltd, with a market capitalization of Rs. 82.48 crore, opened at Rs. 65.45 against the previous close of Rs. 62.38. The stock touched an intraday high of Rs. 65.49, hitting its 5 percent upper circuit.
What’s the News?
HGM Limited formerly known as HOV Services Limited, a global technology-driven enterprise in AI-driven healthcare services, announced that its wholly owned US subsidiary, Healthcare Capital Holdings LLC (HCH), has signed a definitive agreement to acquire Aidéo Technologies LLC. This acquisition strengthens HGM’s healthcare platform across revenue cycle management, medical coding, and analytics, supporting its goal of delivering scalable AI-powered automation.
Aidéo Technologies, incorporated in Delaware and headquartered in Las Vegas, reported turnover of Rs. 18.96 crore in FY24. It specializes in AI-powered autonomous coding productivity solutions for the RCM industry, with a Gemini Solution Suite enhancing efficiency through AI. Post-acquisition, Aidéo will be 100 percent owned by HCH.
The Rs. 14.08 crore deal will be executed through the issue of HCH Class B Preferred Stock. The transaction, structured on an arm’s length basis, does not fall under related party transactions but will make Aidéo a related party post-acquisition. No prior regulatory approvals are required, and completion is expected by August 20, 2025.
The acquisition is aimed at integrating advanced AI automation into healthcare workflows. Aidéo’s technology ensures interoperability with industry-standard EHR systems and supports a wide range of specialties including surgical, radiology, anesthesia, and emergency departments across the US.
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Management Commentary
Dr. Bhargav Thakkar, EVP Healthcare of HGM Limited, said: “Acquiring Aidéo Technologies is a major step towards our goal of building a comprehensive AI-driven healthcare services platform. Aidéo’s Autonomous Coding Platform, built on advanced AI, natural language processing, real-time analytics, and Large Language Models (LLM), delivers accuracy that surpasses manual and traditional CAC tools.
Its HL7 interoperability ensures seamless communication with industry-standard EHR systems, supporting surgical specialties, emergency departments, anesthesia, radiology, and RCM companies across the U.S.
This technology complements our existing capabilities, allowing us to scale rapidly, improve compliance, and deliver greater value to providers, payers, and patients. The acquisition reflects our strategy to integrate AI-led automation into critical healthcare workflows, meeting the growing demand for efficiency and innovation in the healthcare ecosystem.”
Financial Snapshot
In Q1FY26, the company reported sales of Rs. 13.61 crore compared to Rs. 5.51 crore in Q4FY25, marking a sequential growth of 147.1 percent. Profit before tax rose from Rs. 1.18 crore to Rs. 2.40 crore, an increase of 103.4 percent, while net profit improved from Rs. 1.32 crore to Rs. 1.73 crore, up 31.1 percent quarter-on-quarter.
On a year-on-year basis, sales grew from Rs. 5.57 crore in Q1FY25 to Rs. 13.61 crore in Q1FY26, up 144.3 percent. Profit before tax surged from Rs. 1.06 crore to Rs. 2.40 crore, reflecting a 126.4 percent jump, while net profit advanced from Rs. 0.78 crore to Rs. 1.73 crore, up 121.8 percent compared to the same quarter last year.
About the Company
HGM Limited, formerly HOV Services Limited, is a global technology-driven enterprise providing scalable solutions across high-growth sectors. With expertise in Artificial Intelligence, process excellence, and operational scalability, the company is developing a leading AI-powered healthcare services platform in the US, focusing on revenue cycle management, medical coding, ambient listening, and healthcare analytics.
Written by – Manan Gangwar
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