HCL Infosystems surges on board's nod for business restructuring

The announcement was made after market hours on Monday, 14 January 2013.

Meanwhile, the BSE Sensex was up 4.23 points or 0.02% at 19,910.64.

On BSE, 1.08 lakh shares were traded in the counter as against average daily volume of 1.42 lakh shares in the past one quarter.

The stock hit a high of Rs 41.25 and a low of Rs 39.55 so far during the day. The stock had hit a 52-week high of Rs 51.80 on 21 February 2012. The stock had hit a 52-week low of Rs 34.90 on 12 September 2012.

The stock had outperformed the market over the past one month till 14 January 2013, surging 5.25% compared with the Sensex's 3.05% rise. The scrip had, however, underperformed the market in past one quarter, declining 13.01% as against Sensex's 6.59% surge.

The small-cap company has equity capital of Rs 44.58 crore. Face value per share is Rs 2.

HCL Infosystems said that the restructuring of the business is with the objective of providing focused management orientation to each of the growth areas and to create a leaner organization for the Hardware Solutions Business. The Composite Scheme of Arrangement (scheme) recommended by the Finance Committee of HCL Infosystems envisages transfer of Hardware Solutions Business of the company to a wholly owned subsidiary viz. HCL System integration. It also involves the transfer of Learning Business of the company to a wholly owned subsidiary namely HCL Learning. The scheme further involves the transfer of Services Business of the company to a wholly owned subsidiary namely HCL Care. The scheme also involves the merger of HCL Infocom, a wholly owned subsidiary with the company. The appointment date for this scheme will be 1 January 2013, HCL Infosystems said in a statement.

HCL Infosystems said the telecom distribution business would continue to be with the company, while the existing wholly owned subsidiary, Digilife Distribution and Marketing Services would continue to be engaged in distribution business of non-telecom products.

HCL Infosystems said the scheme is subject to requisite approvals.

HCL Infosystems' net profit slumped 84.3% to Rs 2.54 crore on 12.6% decline in net sales to Rs 2341.68 crore in Q1 September 2012 over Q1 September 2011.

HCL Infosystems is a hardware, services and information & communication technologies (ICT) systems integration company, offering a wide spectrum of ICT products that include computing, storage, networking, security, telecom, imaging and retail.

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