Mid-cap IT stock surge: Persistent Systems share price hits 52-week high. Here’s why

  • Mid-cap IT stock surges: Persistent Systems' share price surged to a 52-week high on September 11 following the announcement of its acquisition of SoHo Dragon Inc. The $4.7 million ( 39 crore) deal is expected to boost the company's revenue and strengthen its position in the BFSI sector.

Shivangini
Published11 Sep 2024, 01:43 PM IST
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Mid-cap IT stock surges: Persistent Systems share price hits 52-week high. Here's why
Mid-cap IT stock surges: Persistent Systems share price hits 52-week high. Here’s why(REUTERS)

Mid-cap IT stock surges: Persistent Systems share price was trading in the green, up over 1.70 per cent on BSE, soon after the company announced the acquisition of select assets from SoHo Dragon Inc. in a deal valued at $4.7 million, or approximately 39 crore, on September 11. This acquisition included specific employees, contractors, and a key customer contract, with the assets expected to generate 77 crore in annual revenue. The agreement was finalized on September 10, 2024, and is subject to standard closing conditions, with completion anticipated within 4-8 weeks.

Also Read | ‘Nifty 50 may rise 5-6% from here; Infosys, Sonata Software preferred IT stocks’

Persistent Systems share price was trading in the green, up 0.74 per cent, at 5,313.00, on September 11, at 2:21 pm. The company enjoys a market capitalisation of 82,885.44 crore. The stock hit a 52-week high earlier in the day.

The payment structure included an upfront payment of 25.6 crore, a maximum earnout of 12.4 crore over three years contingent on performance, and 1 crore allocated for retaining key personnel. The acquisition further bolsters Persistent’s strategic positioning in the BFSI sector, a key industry for both companies.

Also Read | Qvc Exports, Globale Tessile & others hit 52 week low today ;Check the full list here?

Mid-cap IT sector in focus

Meanwhile, a recent analysis by a domestic financial firm, Prabhudas Lilladher, shed light on the current state of India's IT sector. The report indicated that major IT companies are grappling with a challenging market environment, with these difficulties now extending to mid-sized IT firms. This has led to noticeable fluctuations in their operational results, as reported by Mint.

Also Read | Indian IT sector sees 6% boost in revenue per head in Q1FY25

Poonawalla Fincorp Limited has announced the grant of 300,000 stock options under its Employee Stock Option Plan-2024 - Scheme-II (ESOP-2024 - Scheme-II). The Nomination and Remuneration Committee of the Board approved this grant on September 10, 2024, with an exercise price set at 382.63 per option.

The options are part of Tranche 13 and will vest according to the schedule outlined in the ESOP-2024 - Scheme-II. As amended, this grant adheres to the SEBI (Share Based Employee Benefits & Sweat Equity) Regulations, 2021.

The company has communicated this development to the National Stock Exchange of India Limited and BSE Limited, requesting that they note the grant.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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First Published:11 Sep 2024, 01:43 PM IST
Business NewsMarketsStock MarketsMid-cap IT stock surge: Persistent Systems share price hits 52-week high. Here’s why

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