Mumbai, Sep 29 : HCL Technologies announcement to buy UK based software company Axon failed to enthuse the stock of software services provider, which slipped over seven per cent in early trade on the Bombay Stock Exchange.
HCL on Friday made a counter bid to Infosys bid to buy Axon. HCL made an offer of 650 pence per share, compared with Infosys offer of 600 pence announced late last month, raising the offer by 8.3 per cent to seal the biggest overseas deal by an Indian firm in this space.
Following the announcement, shares of the Indian software firm declined 7.49 per cent in early trade and were trading at Rs 197 at 1123 hrs. As many as 65,435 shares exchanged hands on the BSE.
Marketmen said the fall in the HCL Technologies shares was largely due to weak market sentiments and as the Axon deal looks slightly overvalued.
The scrip had opened on a positive note at Rs 213, marginally up from its Friday s closing price of Rs 212.95. However, during the the early trade, shares of the firm fell to an intra day low of Rs 195.20.
HCL Technologies has arranged a 400 million pound loan for the deal with balance of the money to be paid from internal accruals, HCL Technologies CEO Vineet Nayar said on September 26, while announcing the counter bid.
HCL is hoping to close the deal by the first quarter of next financial year.
The scrip has touched its maximum value at Rs 336 in December last year and HCL Technologies has recored its worst price at Rs 180 on January 22 this year.
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