Quess Corp rallies over 10% on heavy volumes

The board approved the acquisition of the facility management business and catering business of MIS.

Quess Corp rose 14% to Rs 702 on the BSE after the company said the board on Monday approved the acquisition of the facility management business and catering business of Manipal Integrated Services (MIS). The stock hit its highest level since listing on July 12, 2016 on back of heavy volumes.

Quess will initially invest Rs 220 crore by subscribing to Compulsorily Convertible Preference Shares (CCPS) of MIS for securing an interest in the Facility Management and Catering Business, development of the same and facilitating the demerger of the same businesses.

Subsequently, the Facility Management and Catering businesses of MIS will be demerged into Quess pursuant to a scheme of arrangement which will see Quess issue approximately 7.15 million equity shares to equity shareholders of MIS.

This will help strengthen the market leading position of Quess in the integrated facility management space in India, Quess Corp said in a release.

Quess Corp also entered into definitive agreements to acquire 74% stake in Inticore VJP Advance Systems.

Quess’ investment is focused on helping ramp-up and market Inticore’s engineering solutions to aerospace, engineering, defense and oil & gas sectors, the company said in a release.

At 02:27 pm; the stock was up 11% at Rs 683 on the BSE, as compared to 0.44% rise in the S&P BSE Sensex. The trading volumes on the counter surged more than seven-fold with a combined 1.28 million shares changed hands on the BSE and NSE so far.