Mastek extends rally after Cover-All Tech shareholders approve merger

Meanwhile, shares of Mastek are transferred from trade-for-trade segment to the rolling segment with effect from today, June 26, 2015.

Shares of Mastek have rallied 19% to Rs 209, extending their 16% gains in the past three trading sessions on the BSE, after the company said that shareholders of Cover-All Technologies have approved its merger with Majesco — the US-based subsidiary of Mastek.

On June 23, Cover-All Technologies Inc announced that its shareholders have approved Cover-AII’s adoption of the agreement and Plan of Merger of Cover-All with and into Majesco, USA, a subsidiary of Majesco Limited, India.

The agreements were signed on December 14, 2014 and amended on February 18, 2015.

Meanwhile, trading in the equity shares of Mastek is permitted under ‘B’ group and transferred from trade for trade (T group) segment to rolling segment with effect from today, June 26, 2015. The circuit filter of the stock has also changed from 5% to 20%.

In the trade-to-trade segment, no speculative trading is allowed, and the delivery of shares and payment of the consideration amount are mandatory.

The stock opened at Rs 184 and hit a high of Rs 211 on the BSE. The counter has seen huge trading volumes, with a combined 1.45 million shares changing hands in the first 15 minutes of trade on the BSE and NSE.