NIIT rose 6.94% to Rs 51.65 at 15:25 IST on BSE after the company said it entered into a pact with China's Guian New Area to offer programs in new-age IT.
Meanwhile, the BSE Sensex was up 144 points, or 0.52%, to 27,602.38.
On BSE, so far 10.11 lakh shares were traded in the counter, compared with an average volume of 3.53 lakh shares in the past one quarter.
The stock hit a high of Rs 52.85 and a low of Rs 48.20 so far during the day. The stock hit a 52-week high of Rs 65.60 on 13 June 2014. The stock hit a 52-week low of Rs 23.10 on 13 February 2014.
The stock had underperformed the market over the past one month till 9 January 2015, sliding 7.65% compared with 1.22% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 9.55% as against Sensex's 3.08% rise.
The small-cap company has an equity capital of Rs 33.03 crore. Face value per share is Rs 2.
NIIT said it entered into a Memorandum of Understanding (MoU) with Guian New Area in the Guizhou province of China, to offer programs in new-age IT, with special focus on Big Data.
A new area is an economic development zone supported by the central government of China to oversee the development and construction of zone within the city. The new areas are given special preferential policies and privileges directly approved by the State Council. These special preferential policies and privileges of the state-level new areas is to encourage and attract new developments to speed up the city's economy.
Under the MoU, NIIT will offer programs in Big Data as Guian has been identified by the Government of China as the national center for the Big Data Industry. Apart from this, NIIT will offer wide range of IT skills training across various fields. Currently, there are over 10,000 students studying in the New University Town campus which is likely to grow to nearly 25,000 over the next few years. Hence, there exists a potential to train a large number of students, NIIT said in a statement.
NIIT has a very unique business model for co-operation with Universities and Colleges in China, where NIIT programs are embedded in university/college IT curriculum, the company added.
NIIT reported net profit of Rs 5.30 crore in Q2 September 2014 as against net loss of Rs 9.47 crore in Q2 September 2013. Net sales declined 8.75% to Rs 132.18 crore in Q2 September 2014 over Q2 September 2013.
NIIT offers learning solutions to individuals, enterprises and institutions across 40 countries.
Powered by Capital Market - Live News
