Redington share price hits record high on THIS divestment update, rises 20% YTD despite stock market slump
Shares of Redington reached a new record high on February 14, following news about divestment from its subsidiary Arena Bilgisayar Sanayi Ve Ticaret A.S.
Stock market today: Shares of Redington, a leading distributor of IT and mobility products, hit a fresh record high on Friday, February 14, following an update on divestment by its step-down subsidiary Arena Bilgisayar Sanayi Ve Ticaret A.S.
Redignton's step-down subsidiary Arena sold its stake in the wholly-owned subsidiary Paynet Ödeme Hizmetler A.Ş to Iyzi Payment and Electronic Money Services Inc for $89.29 million. Paynet has now ceased to be a subsidiary of Arena.
"We have been informed by Arena that the disinvestment of Paynet to Iyzi Payment and Electronic Money Services Inc. has been completed on February 13, 2025. Consequently, Paynet has ceased to be a subsidiary of Arena," Redington informed exchanges.
Share Price Impact
Following this announcement, shares of Redington hit the day's high of ₹248. The stock opened at ₹247.45 apiece, higher than its previous closing price of ₹244.60. The stock thereafter extended gains to an all-time high level of ₹248 on the BSE.
The stock, however, succumbed to some selling pressure at higher levels and traded marginally lower. Around 12.05 pm, Redington share price was at ₹243.10, down 0.61%.
Despite this, on a year-to-date (YTD) basis, Redington share price has gained 20%, defying the broader market weakness. During the same period, both Sensex and Nifty have fallen 3.65% and 3.75%, respectively.
Firm posts highest-ever quarterly PAT, revenue
The strong gains in the stock can be attributed to the solid financial performance by Redington for the quarter ended December 2024 (Q3), wherein it posted the highest-ever profit after tax and revenue.
The company in Q3 FY25 posted a revenue of ₹26,746 crore, up 14% year-on-year (YoY), while the net profit rose 17% to ₹400 crore, driven by strong execution across business segments and geographies.
The company's cloud business witnessed a 42% YoY growth and the Technology Solutions Group (TSG) business grew 28% YoY, driven by demand and large scale project wins.
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