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Allsec, Quess Corp shares rise up to 12% as boards approves merger

Allsec, Quess Corp shares rise up to 12% as boards approves merger

Shares of Quess Corp gained 4.32 per cent to Rs 642.9 against the previous close of Rs 616.25.

Allsec Technologies stock touched an intraday high of Rs 482.45, rising 11.94 per cent on BSE. Allsec Technologies stock touched an intraday high of Rs 482.45, rising 11.94 per cent on BSE.

Shares of Allsec Technologies and Quess Corp zoomed up to 12 per cent today on a merger announcement. "The Board of Directors of Allsec Technologies and Quess Corp in their respective meetings held on June 22, 2022 have approved the Scheme of Amalgamation which inter alia provides for the merger of Allsec into Quess (Scheme)," Allsec said.

Reacting to the development, Allsec Technologies stock touched an intraday high of Rs 482.45, rising 11.94 per cent on BSE.

Shares of Quess Corp too gained 4.32 per cent to Rs 642.9 against the previous close of Rs 616.25. Allsec Technologies stock touched an intraday high of Rs 482.45, rising 11.94 per cent on BSE.

The transaction will be an all-stock deal, with minority shareholders of Allsec (other than Quess) to be issued equity shares of Quess in the ratio of 0.74:1  (i.e. Public shareholders of Allsec will receive 74 shares of Quess for every 100 shares held in Allsec). The deal will be tax neutral for Quess and Allsec.

Buoyed by the deal, Allsec Technologies stock opened 3.94 per cent higher at Rs 448. Allsec Tech stock trades higher than 5-day moving averages but lower than 20-day, 50-day, 100-day and 200-day moving averages. In a year, the stock has surged 18.59 per cent but lost 30 per cent in 2022.  Market cap of the firm rose to Rs 683.32 crore. Total 6,968 shares changed hands amounting to a turnover of Rs 32.63 lakh on BSE. The market cap of the firm rose to Rs 683.82 crore.

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On the other hand, shares of Quess Corp opened with a gain of 4.32 per cent at Rs 642.9. Quess Corp stock trades higher than 5-day moving averages but lower than 20-day, 50-day, 100-day and 200-day moving averages.

In a year, the stock has lost 22.89 per cent and fallen lost 30 per cent in 2022. Market cap of the firm rose to Rs 683.32 crore. Total 7,544 shares changed hands amounting to a turnover of Rs 47.86 lakh on BSE. The market cap of the firm rose to Rs 9,180.94 crore.

Speaking about the merger, Ashish Johri, CEO, Allsec, said, "We are excited about joining the Quess family and look forward to a stronger market positioning and expanded offering for our customers. We believe this also provides greater opportunities and mobility for our employees. The complementary businesses of Allsec and Quess will make this integration a win-win for all stakeholders".

Quess is a leading business service provider in India, driving productivity for clients with technology and possesses deep expertise in its 3 synergistic platforms which are workforce management, global technology solutions and operating asset management.

Allsec Technologies Limited, headquartered in Chennai has been a pioneer in the HRO and International DBS spaces, and is the leading Payroll Services Provider in India.