Shares of this IT stock under the ‘small-cap’ category jumped up to 2.45 percent in Thursday’s trading session after the company signed a share purchase agreement (SPA) to acquire a 100 percent stake in a Private Company worth Rs 779 crores. In the past month, the company’s stock gained nearly 10 percent for its holders.
With a market capitalization of Rs 12,467.50 crores, the stocks of Happiest Minds Technologies Limited started their trading session on Thursday at Rs 827 and closed the session at Rs 818.75. The company’s scrip witnessed an intra-day high price of Rs 838.55 exhibiting a gain of around 2.44 percent compared to the previous close of Rs 818.55 apiece.
Such bullish share price movements were observed today after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about signing a Share Purchase Agreement (SPA) with “PureSoftware Technologies Private Limited” to acquire 100% of the equity interest in the share capital of the latter.
PureSoftware Technologies Private Limited is engaged in the business of providing transformation and digital engineering services and software solutions to its customers.
The abovementioned acquisition will aid the IT company in strengthening its domain capabilities in Banking, Financial Services, Healthcare, and Life Sciences verticals while also giving access to a set of top-tier customers.
The acquisition is expected to be completed by 31st May 2024, and on completion of the same, PureSoftware will become a wholly owned subsidiary of the Company.
The consideration, being a cash one, aggregated to Rs 779 crores, split into an upfront payment of Rs 635 crores and a deferred consideration of Rs 144 crores which is payable at the end of FY25 based on the achievements of certain performance targets.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, showed some positive movements with the former increasing marginally from Rs 370 crores during Q2FY24 to Rs 371 crores during Q3FY24, and the latter, from Rs 55 crores to Rs 80 crores.
Happiest Minds Technologies Limited is an IT company providing a spectrum of disruptive technologies like artificial intelligence (AI), blockchain, cloud, robotics/drones, security, virtual/augmented reality, and more to various clients included in sectors like automotive, banking, e-commerce, edutech, engineering research and development (R&D), manufacturing, and hospitality to undergo digital transformation.
Written by Amit Madnani
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