Share price of IT firm HCL Technologies gained over 4% in Monday's early session to hit a fresh high of Rs 849.7 on BSE after the firm said it would acquire Australian IT solutions firm DWS Ltd for $115.8 million.
The company said this move would help the Indian company strengthen its position in the Australia and New Zealand markets.
Following the news, HCL Technologies share price traded as the top gainer on both BSE and NSE, rising 4.76% to an intraday as well as a new high of Rs 849.7, against the last close of Rs 811.10.
The stock saw high volatility today and also touched an intraday low of Rs 794.05, falling 2.1% due to major trend reversal in broader markets today. HCL Technologies shares have fallen after 2 days of consecutive gain. The stock has risen 0.93% in one week, 13% in one month and 41% since the beginning of the year. HCL Technologies stock is trading higher than its 5, 20, 50, 100 and 200-day moving averages.
Market capitalisation of the firm stood at Rs 2,29,033 crore as of today's closing session.
HCL Technologies announced its intent to acquire DWS Limited, an Australian IT, business and management consulting group that has over 700 employees and offices in Melbourne, Sydney, Adelaide, Brisbane, and Canberra.
DWS delivers business and technology innovation to large clients across a spectrum of verticals, the company said.
Michael Horton, Executive Vice President & Country Manager, Australia & New Zealand, HCL Technologies, said "We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers. HCL has invested in the region for over 20 years and is committed to enabling digitalisation and growing the local ecosystem, he added.
Danny Wallis, CEO and Managing Director, DWS said, "We are delighted the DWS team is joining HCL. This acquisition represents an outstanding outcome for all DWS stakeholders: shareholders, employees, clients and other business partners."
On the development, Jyoti Roy, DVP- Equity Strategist, Angel Broking said, "We continue to maintain our positive outlook on HCL Tech as the announcement reflects the company's leadership position in the cloud migration space. We believe that HCL will be the biggest beneficiary of migration from public cloud to hybrid cloud driven by a strong presence in the Infrastructure management business."Share Market News Live: Sensex falls 30 points, Nifty flat at 11,503; Bajaj Twins, RIL, Airtel top losers
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