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KPIT Technologies hits 52-week high on restructuring plan

The stock hit a 52-week high of Rs 223, up 6% on BSE after KPIT and Birlasoft have announced a merger to create an over $700-million combined entity.

SI Reporter  |  Mumbai 

deal, merger

hit a 52-week high of Rs 223, up 6% on BSE in otherwise subdued market after the information technology (IT) company announced a restructuring plan. C K Group-owned and have announced a to create an over $700-million combined entity. The entity would be demerged into two separate companies later.

The first entity, which would focus on digital business IT services, would be known as Birlasoft, while the other business, which would focus on automotive engineering and mobility solutions, would be known as “The board has approved a draft composite scheme for amalgamation of (India) with the company and of the engineering business of the company into KPIT Engineering (KEL), a wholly-owned subsidiary of the company to be renamed as KPIT Technologies”, KPIT said in a regulatory filing. Shareholders of would receive 22 equity shares of the combined KPIT-for every 9 equity shares of The shares of KEL would be listed pursuant to the proposed and the shareholders of combined KPIT-would receive one share of KEL for every one share they hold in the combined firm, it said. As a part of the proposed merger, and KPIT promoters made an open offer for KPIT's minority shareholders to acquire up to 51.35 million equity shares representing 26% of total equity of KPIT at offer price of Rs 182 per share. At 11:28 AM; the stock was trading 5% higher at Rs 220, as compared to 0.50% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 10.92 million shares changed hands on BSE and NSE.

First Published: Tue, January 30 2018. 11:32 IST