Shares of HOV Services is locked in upper circuit of 10% at Rs 55.10 on BSE, extending its past three days rally on a media report that the company has put its business processing outsourcing (BPO) company SourceHOV for sale and is expecting a valuation of $1.2 billion.
The stock has rallied 70% in past four trading sessions from Rs 32.45 on October 25 compared to less than 2% rise in benchmark index.
A combined 313,300 shares have already changed hands on the counter and there are pending buy orders for around 105,000 shares on BSE and NSE at 1025 hours.
SourceHOV is jointly owned by Citigroup Venture Capital International and HOV Services.
“The company has a step down subsidiary in the US which holds about 27.2 % shares of SourceHOV Inc. Citigroup Venture Capital International (CVCI) is a Private Equity group with many investments and is the majority shareholder in SourceHOV and keeps exploring several options for sale of different assets of CVCI including SourceHOV, which is a common practice among private equity groups,” HOV Services said in a regulatory filing on clarification on news item.
The Company has not appointed investment banker Morgan Stanley (or any other merchant banker) for a sale. As far as our information goes, there are no discussions that have reached definitive stage (that there are no agreements which the company presently proposes to enter), which requires information to be supplied to the stock exchange, it added.
The stock has rallied 70% in past four trading sessions from Rs 32.45 on October 25 compared to less than 2% rise in benchmark index.
A combined 313,300 shares have already changed hands on the counter and there are pending buy orders for around 105,000 shares on BSE and NSE at 1025 hours.
SourceHOV is jointly owned by Citigroup Venture Capital International and HOV Services.
“The company has a step down subsidiary in the US which holds about 27.2 % shares of SourceHOV Inc. Citigroup Venture Capital International (CVCI) is a Private Equity group with many investments and is the majority shareholder in SourceHOV and keeps exploring several options for sale of different assets of CVCI including SourceHOV, which is a common practice among private equity groups,” HOV Services said in a regulatory filing on clarification on news item.
The Company has not appointed investment banker Morgan Stanley (or any other merchant banker) for a sale. As far as our information goes, there are no discussions that have reached definitive stage (that there are no agreements which the company presently proposes to enter), which requires information to be supplied to the stock exchange, it added.
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