Ceinsys Tech hit an upper circuit limit of 20% at Rs 211.05 after the company's board approved the acquisition of Allygrow Technologies for Rs 68.06 crore.
Allygrow Technologies is a technology driven company having presence in US, Europe and India. It specializes in product design and robotics automation (manufacturing engineering) services.The acquisition of 100% equity stake in Allygrow Technologies from its existing shareholders is for a total consideration not exceeding Rs 68.06 crore. It will be discharged partly by cash consideration of Rs 11.79 crore. The remaining consideration of Rs 56.27 crore will be through issue of upto 36,07,530 equity shares at Rs 156 each.
Ceinsys Tech said it seeks to diversify into Engineering Design Services (EDS) as one of its business domains. As Allygrow Technologies is operating in the international markets, it will help to expand Ceinsys' business domain.
Dr. Abhay Kimmatkar, managing director, Ceinsys, said, "The acquisition would enable expand Ceinsys business domains globally through Allygrow international presence. Allygrow will add into the value chain of Ceinsys Tech's offerings for its customers. The synergies expands its horizons to Automotive. Ceinsys will have an unique positioning as an Indian brand with wide exposure & competencies in AEC & Manufacturing segments."
On a consolidated basis, net profit of Ceinsys Tech declined 90.45% to Rs 0.30 crore on 11.38% rise in net sales to Rs 53.62 crore in Q2 September 2021 over Q2 September 2020.
Ceinsys Tech is a CMMI (SVC & DEV) Level 5 company. The company has built a strong reputation as a premier solution provider in geospatial, engineering and enterprise IT solutions.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
