Redington India gains after subsidiary hikes stake in Linkplus

Redington India rose 1.81% to Rs 112.20 at 11:13 IST on BSE after the company said its subsidiary has raised its stake in Turkey-based Linkplus.

The announcement was made after market hours yesterday, 18 May 2016.

Meanwhile, the BSE Sensex was down 98.86 points, or 0.38%, to 25,605.75 .

On BSE, so far 18,000 shares were traded in the counter, compared with an average volume of 19,159 shares in the past one quarter. The stock hit a high of Rs 115.70 and a low of Rs 111.40 so far during the day. The stock hit a 52-week high of Rs 132 on 24 September 2015. The stock hit a 52-week low of Rs 91.20 on 19 June 2015. The stock had underperformed the market over the past one month till 18 May 2016, falling 2.95% compared with 0.43% decline in the Sensex. The scrip had also underperformed the market in past one quarter, rising 7.83% as against Sensex's 8.69% rise.

The small-cap company has an equity capital of Rs 79.96 crore. Face value per share is Rs 2.

Redington India's step down subsidiary Redington Gulf FZE has acquired 10% stake from the Linkplus shareholders for a consideration of $1.15 million. With this, Redington Gulf FZE's stake in Linkplus Bilgisayar Sistemleri Sanayi ve Ticaret A.S. Turkey has increased to 80%. The balance 20% share will be purchased on equitable basis during the calender year 2016 and the calender year 2017 at a price/earning (P/E) multiple of 5X. The company has received an approval of competition board of Turkey for the said acquisition.

On consolidated basis, Redington (India)'s net profit rose 9.17% to Rs 110.34 crore on 6.82% rise in net sales to Rs 9003.32 crore in Q3 December 2015 over Q3 December 2014. The company will declare Q4 results on 24 May 2016.

Redington (India) is a supply chain solutions provider worldwide to over 100 leading manufacturers of information technology, telecom, lifestyle and consumer electronics products.

Powered by Capital Market - Live News