R Systems shares soar 17%, M-cap surges by ₹750 crore; key reasons here

The market cap of R Systems rose over ₹750 crore after announcing the strategic acquisition of Mangalore-based Novigo Solutions

Shares of R Systems International rallied over 17 per cent on Friday as it announced that it will acquire the Mangalore-based Novigo Solutions to "create a global digital engineering powerhouse". 

 

The IT-enabled services company's stock rose as much as 17.34 per cent during the day to ₹496.9 per share, the highest level since December 20, 2024. The stock pared gains to trade 14.9 per cent higher at ₹486.6 apiece, compared to a 0.62 per cent decline in Nifty 50 as of 10:30 AM. 

 

The market capitalisation of the company rose from ₹5,013 crore in the previous session to ₹5,770 crore on Friday, according to Bloomberg data. 

 

Shares of the company rose for the third straight session and currently trade at 291 times the average 30-day trading volume, according to Bloomberg. The counter has risen 3 per cent this year, compared to a 5.5 per cent advance in the benchmark Nifty 50.   TRACK LIVE STOCK MARKET UPDATES HERE

R Systems to acquire Novigo Solutions 

R Systems entered into a definitive agreement to acquire Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services.

 

The acquisition will create a global digital engineering powerhouse with revenue of ₹2,060 crore and Ebitda of ₹380 crore, the company said in an exchange filing. The combined entity will offer engineering, deployment, and management of enterprise-scale fleets of artificial intelligence (AI) agents under a single governed platform, it said. 

 

Novigo has posted strong growth, delivering 44 per cent revenue CAGR over the past three years, with an Ebitda margin of 25 per cent and healthy free cash flows. 

 

The transaction includes an upfront cash consideration of ₹400 crore, with an additional stock component linked to future Ebitda performance. The deal is expected to be earnings per share (EPS) accretive for R Systems from the first year, the company said. 

 

Through the acquisition, R Systems aims to tap into the growing demand for autonomous, compliance-ready AI workflows, integrating its OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, it said. This positions the combined company as a leader in designing, orchestrating, and operating intelligent enterprises.

 

The acquisition also expands R Systems' footprint in the Middle East and strengthens its delivery presence in Bengaluru and Tier 2 cities such as Mangaluru. Novigo’s management team will continue with the combined entity to drive growth. 

About R Systems

The company is a leading digital product engineering company that designs and develops chip-to-cloud software products, platforms, and digital experiences that empower its clients to achieve higher revenues and operational efficiency. 

 

The company's product mindset and engineering capabilities in Cloud, Data, AI, and CX enable it to serve key players in the high-tech industry, including ISVs, SaaS, and Internet companies, as well as product companies in telecom, media, finance, manufacturing, health and public services verticals.

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