This S&P BSE Smallcap stock has a market cap of Rs. 2867 crores. The company announced acquisition of an Australia based group of companies to expand its offerings and presence into the APAC region. Subsequently, the company saw volume spurt that was 8% higher than the weekly average.
It has been on an uptrend since early November 2022 with the 200 day moving average acting as resistance a couple times with strong bounce backs. It currently trades 5% away from its 52 week high and 58% above its 200 day moving average, 4.3% above its 20 day moving average.
MPS Ltd (“MPS”) is a multibagger stock that is on track to be a multibagger for the 4th year in a row. Its returns YTD are 85%, for 1 and 3 year periods returns are 118% and 296% respectively. Meaning, if you invested Rs. 1 lakh into MPS about a year ago it would have turned Rs. 2.18 lakh right now!
The company is backed by strong fundamentals indicated by a Piotroski F score of 9 which is the maximum score on the scale. Unsurprisingly such a stock has prominent investors’ attention.
MPS stated in a filing dated 29th August that it has entered into a definitive agreement to acquire Australian Group of companies for a total consideration of AUD 9.2 million. The acquisition involves complete stake purchase of Liberate Learning Pty Ltd (Australia), Liberate eLearning Pty Ltd (Australia), App-eLearn Pty Ltd (Australia), and Liberate Learning Limited (New Zealand) (hereafter referred to as “Liberate Group”).
The deal is structured as a stock sale in 100% cash transaction of which 65% shareholding of Liberate Group will be acquired on or before September 1st 2023. The remaining 35% shareholding will be acquired in subsequent tranches based upon valuation methodology as agreed under the transaction documents.
Rahul Arora, Chairman and CEO of MPS Limited, stated that the acquisition reinforced their commitment to changing up their acquisition playbook to acquire growing businesses with tremendous synergies for MPS. He also stated that the APAC region, untapped by MPS will bring in opportunities in sync with trends and that he is looking forward to supporting Rod with scaling Liberate Group.
Written by Sandeep R
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