Mumbai: Defying the weak broader market, shares of Patni Computer Systems climbed by up to 18% in early trade on the bourses on Thursday after US-based promoter iGate announced plans to delist the domestic company from Indian bourses by mid-2012 to obtain full ownership.
Despite a weak opening, the company’s shares swiftly recovered and jumped by 18.1% to Rs459 on the BSE. Buying momentum also intensified at the company’s counter on the NSE, where the scrip surged by 11.9% to an early high of Rs432.40.
However, the scrip saw some of the gains pared in later trade and was being quoted at Rs416.85, up 7.26% from its previous close on the BSE, at 10:10 am.
US-based iGate, which acquired Patni Computer Systems earlier this year, plans to delist the domestic company from Indian bourses by mid-2012.
Patni’s American Depository Receipts (ADRs) would also be delisted from the New York Stock Exchange.
iGate intends to commence, through its subsidiaries Pan-Asia iGate Solutions and iGate Global Solutions Ltd, a process that could lead to the delisting of its Indian subsidiary, Patni Computer Systems, the US-based company said in a statement.
The announcement was made after market hours on Wednesday.
iGate had acquired a majority stake in Patni in January this year for $1.2 billion in one of the largest deals in the Indian IT sector. Post the open offer, iGate now holds a stake of about 82% in Patni.
The surge in the stock was in sharp contrast to the gloomy market conditions, with the benchmark Sensex trading at 16,676.15, down 99.72 points, on the BSE at 10:10 am.