Sasken Communication Technologies hit an upper circuit limit of 20% at Rs 265.55 at 13:53 IST on BSE after the company announced that it received arbitration award in its favor in the matter of Spreadtrum Communications Inc.
The company made the announcement during trading hours today, 1 July 2014.
Meanwhile, the BSE Sensex was up 106.12 points, or 0.42%, to 25,519.90.
On BSE, so far 1.64 lakh shares were traded in the counter, compared with an average volume of 34,426 shares in the past one quarter.
The stock hit a high of Rs 265.55 and a low of Rs 222 so far during the day. The stock hit a 52-week high of Rs 265.55 on 1 July 2014. The stock hit a 52-week low of Rs 100.60 on 4 September 2013.
The stock had outperformed the market over the past one month till 30 June 2014, rising 9.07% compared with 4.94% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.36% as against Sensex's 13.76% rise.
The small-cap company has an equity capital of Rs 21.28 crore. Face value per share is Rs 10.
Sasken Communication Technologies (Sasken) said that the award recognizes that the agreement between the parties is in full force and as a result, Spreadtrum has been directed to pay $31.7 million within 30 days, towards royalties and interest on unpaid royalties. Further the arbitrator had directed Spreadtrum to continue to provide royalty reports and pay the contracted royalties on an ongoing basis.
In December 2012, Sasken approached American Arbitration Association's International Centre for Dispute Resolution ("AAA") over non-payment of royalties, which was contractually agreed by Spreadtrum for the software/IP licensed by Sasken as part of the joint development project undertaken by both the parties. Spreadtrum failed to meet the above, and other obligations to Sasken, a decision that resulted in arbitration filed by Sasken before the American Arbitration Association's International Centre for Dispute Resolution.
Spreadtrum is required to pay within 30 days an amount of $31.70 million and further continue to pay royalties for the Foreground IP provided by Sasken.
Sasken's consolidated net profit declined 18.4% to Rs 9.07 crore on 2.8% growth in revenue to Rs 116.32 crore in Q4 March 2014 over Q3 December 2013.
Sasken is a leader in providing engineering R&D and productized IT services to global tier 1 customers in the communications & devices, retail, insurance and independent software space.
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