Parental change props up Hughes Soft

DALAL STREET SPIKES

The share price of Hughes Software ended 2.13 per cent higher in a subdued market on Tuesday as promoters sold their entire stake in the company to Flextronics International Asia Pacific (Flextronics) at a premium to the existing market price.

As per the deal, Hughes Software promoters have decided to sell their entire 54.96 per cent stake in the company to Flextronics at Rs 547 per share, which is a 5 per cent premium to the stock's Monday closing price of Rs 520.

Hughes Software, after hitting an intra-day high of Rs 538, closed at Rs 531.10. The counter witnessed a volume of 1.67 lakh shares on the Bombay Stock Exchange (BSE) and 3.7 lakh shares on the National Stock Exchange (NSE).

The stock closed on the NSE with gains of 2.23 per cent at Rs 531.50.

The change in parentage of Huges Software would trigger an open offer for an additional 20 per cent stake, for at least Rs 547 per share, said market analysts.