HCL Technologies rose 0.88% to Rs 819.70 after the company announced an agreement to acquire 100% stake in US based Urban Fulfillment Services, a provider of mortgage business process & fulfilment services.
The announcement was made during market hours today, 24 April 2017.Meanwhile, the S&P Sensex was up 294.50 points or 1% at 29,659.80.
On the BSE, 20,000 shares were traded on the counter so far as against the average daily volumes of 50,000 shares in the past two weeks. The stock had hit a high of Rs 824.40 and a low of Rs 810 so far during the day.
The stock had hit a 52-week high of Rs 889.65 on 31 March 2017 and a 52-week low of Rs 706.50 on 11 May 2016.
The stock had underperformed the market over the past one month till 21 April 2017, dropping 5.21% compared with 0.41% drop in the Sensex. The scrip had also underperformed the market in past one quarter, falling 3.09% as against Sensex's 8.62% rise.
The large-cap company has equity capital of Rs 285.38 crore. Face value per share is Rs 2.
Urban Fulfillment Services (UFS) is a limited liability company incorporated in USA in 2002. It employs over 350 highly skilled professions, operating out of its 3 centres in the US.
This acquisition would immediately bolster HCL's presence into the mortgage business process outsourcing (BPO) market. The acquisition is likely to be completed in June 2017. The total cash consideration for 100% stake in UFS is up to $30 million, including contingent payments subject to certain financial milestones.
Mortgage servicing is a regulated activity in USA and the transaction would require regulatory approvals for obtaining the licenses.
The turnover of UFS for the financial year ended 31 December 2016 was $48 million.
HCL Technologies' consolidated net profit rose 2.3% to Rs 2062.04 crore on 2.56% growth in net sales to Rs 11814.20 crore in Q3 December 2016 over Q2 September 2016.
HCL Technologies is a leading global IT services company.
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