Quess Corp surges 18% on preferential share allotment to Amazon

The board has approved issue of 754,437 equity shares of the Company to Amazon.com for an aggregate amount of Rs 51 crore at an issue price of Rs 676 by way of a preferential allotment.

Shares of Quess Corp zoomed by 18 per cent to Rs 521 in intra-day trade on the BSE on Friday in noon deal after the company announced its board approved preferential issue of equity shares to Amazon.

“The board has approved issue of 754,437 equity shares of the Company to Amazon.com NV Investment Holdings LLC, a category Ill Foreign Portfolio Investor, for an aggregate amount of Rs 51 crore at an issue price of Rs 676 by way of a preferential allotment,” Quess Corp said in a regulatory filing. Post allotment, Amazon will hold 0.51 per cent of the company's equity capital.

In relation to the proposed investment by Amazon (investor) in the Company, the board has approved the execution by the Company of the Share Subscription Agreement with the investor for the proposed issue of equity shares to the investor on a preferential basis and the investment agreement with the investor and Qdigi Services, a wholly owned subsidiary of the Company, in relation to the utilization of the proceeds of the investment towards, and certain rights of the Investor relating to, the business of the Subsidiary, it said.

The stock hit an all-time low of Rs 416 on Tuesday, July 9, in intra-day trade. It tanked 48 per cent from its recent high of Rs March 19, against 1 per cent gain in the S&P BSE Sensex.

At 01:00 pm, the stock was trading 14 per cent higher at Rs 503 on the BSE, as compared to 0.10 per cent rise in the benchmark index. The trading volumes on the counter more-than-doubled with a combined 3.53 million shares changing hands on the NSE and BSE so far.