Tech Mahindra inches up on pact to acquire 75% stake in FSNI

Tech Mahindra rose 0.4% to Rs 1,776 at 13:01 IST on BSE after the company said it has entered into a pact to acquire 75% stake in FSNI., a technology startup company subject to necessary regulatory approvals, at a consideration of $10 million.

The announcement was made before market hours today, 21 April 2014.

Meanwhile, the S&P BSE Sensex was up 55.58 points or 0.25% at 22,684.42.

On BSE, so far 17,000 shares were traded in the counter as against average daily volume of 67,336 shares in the past one quarter.

The stock hit a high of Rs 1,790 and a low of Rs 1,770.45 so far during the day. The stock had hit a 52-week high of Rs 1,936.35 on 6 March 2014. The stock had hit a 52-week low of Rs 895.25 on 21 May 2013.

The stock had underperformed the market over the past one month till 17 April 2014, sliding 0.8% compared with the Sensex's 3.76% rise. The scrip had also underperformed the market in past one quarter, declining 0.22% as against Sensex's 7.43% rise.

The large-cap company has equity capital of Rs 233.53 crore. Face value per share is Rs 10.

Tech Mahindra said that Fix Stream Networks Inc (FSNI) is going to develop emerging technology which will benefit Tech Mahindra's customer base.

Tech Mahindra's consolidated net profit jumped 40.55% to Rs 1009.52 crore on 2.66% growth in net sales to Rs 4898.55 crore in Q3 December 2013 over Q2 September 2013.

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra. The company serves telecom service providers, equipment manufacturers, software vendors and systems integrators.

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