Share price of this small-cap stock and a pioneer in Product Engineering and Digital Transformation moved up by nearly 14.1% to Rs. 1,724.8 on BSE in the morning trading session of Thursday, compared to its previous closing price of Rs. 1,511.6, after the Board of the company approved an acquisition.
With a market capitalisation of Rs. 2,314.7 crores, at 10:53 a.m. the shares of Sasken Technologies Limited were trading in the green at Rs. 1,536.85, up by nearly 1.94 percent.
In the last one year, the company has delivered positive returns of about 94.06 percent and nearly 45.7 percent of positive returns in the last six months. So far in 2024, it has given positive returns of around 5.4 percent.
According to recent regulatory filings with the stock exchanges, the Board of Sasken Tech approved a proposal to make a strategic investment of Rs. 50 crores, either directly or by entering via a joint venture (JV) with one of the companies having a global presence, specialising in Advanced AI/5G/Power driven IP licensing, custom ASIC design and foundry services.
Further, the company invested Rs. 33.2 crore in one of the companies viz. Anups Silicon Services Private Limited (ASSPL) to acquire 60% of the equity share capital of ASSPL and subscribe to the Compulsory Convertible Debentures offered by the ASSPL through preferential issue on a private placement basis.
Following the said investment, ASSPL will become a subsidiary of Sasken Technologies Limited.
The investment would strengthen Sasken Group’s Intellectual Property portfolio and engineering capabilities. It complements the company’s business and helps it achieve its expansion and growth objectives.
In terms of financials, the company’s revenue from operations reduced by nearly 21.95 percent YoY from Rs. 123 crore in Q3 FY22-23 to Rs. 96 crore in Q3 FY23-24, accompanied by a decrease in the net profit of 41.93 percent YoY, from Rs. 31 crore in Q3 FY22-23 to Rs. 18 crore in Q3 FY23-24.
Sasken Technologies Limited provides concept-to-market and chip-to-cognition R&D solutions to customers in the semiconductor, automotive, industrial, consumer electronics, enterprise devices, satellite communications, telecom, and transportation industries.
Written by Shivani Singh
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