HOV Services tanks 20% on heavy volumes

HOV Services is locked in lower circuit of 20% at Rs 120 on the National Stock Exchange (NSE) after the company said the proposed buyer of its stake in SourceHOV decided not to proceed with the investment.

“In regards to the proposed transaction for sale of Company’s investment through its US based wholly owned subsidiary, HOVS LLC, the Company has received communication from the purchaser informing the Company that they had decided not to proceed with the purchase of the investment,” HOV Services said in a regulatory filing.

In September last year, the board of HOV Services had approved the sale of company's entire investment in SourceHOV through its US based wholly owned subsidiary HOVS LLC to promoters, affiliate / related parties and to other potential buyers.

HOV Services through its wholly owned direct subsidiary HOVS LLC., a Nevada-based limited liability company in USA) holds a minority investment in SourceHOV Holdings Inc, a company incorporated in Delaware, USA.

The stock opened at Rs 126 and touched a high of Rs 138 on the NSE in early morning trade. Till 1035 hours, a combined 190,911 shares changed hands and there are pending sell orders for 69,053 shares on the NSE and BSE.