Redington gains as overseas unit acquires Turkish IT services firm

Redington (India) rose 1.83% to Rs 58.50 at 14:48 IST on BSE after the company said its Turkey-based step down subsidiary has acquired 47.78% shares of ADEO Bilisim Danismanlik Hizmetleri San. ve Tic. A.S. for $1.09 million.

The announcement was made after market hours on Tuesday, 3 September 2013.

Meanwhile, the S&P BSE Sensex was up 301 points or 1.65% at 18,535.66.

On BSE, 1,320 shares were traded in the counter as against average daily volume of 33,855 shares in the past one quarter.

The stock hit a high of Rs 59.50 and a low of Rs 58 so far during the day. The stock had hit a 52-week low of Rs 50.80 on 21 August 2013. The stock had hit a 52-week high of Rs 92.80 on 18 December 2012.

The stock had outperformed the market over the past one month till 3 September 2013, sliding 2.54% compared with the Sensex's 4.85% fall. The scrip had, however, underperformed the market in past one quarter, declining 24.01% as against Sensex's 7.02% fall.

The small-cap company has equity capital of Rs 79.86 crore. Face value per share is Rs 2.

Redington (India)'s overseas step-down subsidiary, ARENA Bilgisayar Sanayi ve Ticaret Anonim Sirketi, Turkey (Arena) has acquired 47.78% shares of ADEO Bilisim Danismanlik Hizmetleri San. Ve Tic. A. S. (ADEO). ADEO provides information technology services including consultancy, outsourcing, productive resource utilisation and training services in Turkey and abroad, to the companies and their partners operating in IT business.

Arena is also planning to make further investments of upto $150,000 in ADEO during the month, to increase its holding to 51% and make it as a subsidiary company, Redington said.

Redington (India)'s consolidated net profit declined 4.1% to Rs 60.85 crore on 12.1% growth in net sales to Rs 6020.09 crore in Q1 June 2013 over Q1 June 2012.

Redington is the largest supply chain solution provider in emerging markets. As a group, Redington is present in India, Middle East, Africa, Turkey, Srilanka, Bangladesh and the Commonwealth of Independent States (CIS) countries.

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