Mastek Hits Upper Circuit On Acquisition Grapevine

Share price of software firm Mastek today zoomed on the exchanges on talks that the company was close to acquiring an information technology company, most likely in the US, one which could give it market access. The stock price was locked at the upper circuit of 20 per cent for the most part of the day and it closed at Rs 212.55 on the Bombay Stock Exchange (BSE).

Though there is no official intimation or announcement by the company in this regard, market sources said that as per indications the target company would have a staff in the range of 500-800. There are reports that the acquisition would add value over the next two years only.

Besides, the company has also indicated to step up recruitment over time in future. It is targeting around half of its revenues from US but at the same time it is consolidating its traditional presence in Europe by setting up a subsidiary in Switzerland while upgrading its Japanese office into a full-fledged subsidiary.