Majesco share price hit the upper circuit today after board of the company approved sale of its US subsidiary to private equity firm Thoma Bravo. The share closed 5% higher at Rs 401.15 against previous close of Rs 382 on BSE. It closed at same level today. Share price of Majesco hit the upper circuit in the beginning of session and traded at the same level throughout the day.
Total 956 shares were traded amounting to turnover of Rs 3.83 crore.Market cap of the firm rose to Rs 1153 crore, The share stands higher than its 5 day, 20 day, 50 day, 100 day and 200 day moving averages. However, the share has lost 25% in one year. The stock has been gaining for the last 2 days and risen 10.24% in the period.
The Nasdaq-listed arm of the IT company will be sold at $13.1 apiece, a premium of around 74 percent to its closing price on July 17, according to the corporate announcement on exchanges. The deal values the company at $594 million.
"The board of the directors of the Company ("Board"), at its meeting held today (i.e., July 20, 2020), after considering the recommendations of the audit committee, approved the sale of the company's entire stake/ investment in the US Subsidiary pursuant to the Merger, subject to the approval of the shareholders of the Company and other regulatory and statutory approvals, as may be required," the firm said.
Maeanwhile,Sensex ended 511 points higher at 37,930 and Nifty gained 140 points to 11,162.