Shares of KPIT Technologies rose as much as 6 per cent amid a weak market today after the company announced the acquisition of Munich-based Technica Engineering to accelerate the transformation towards software-defined vehicle. KPIT Technologies stock gained 5.88 per cent to Rs 634 against the previous close of Rs 598.80 on BSE.
KPIT Technologies share has gained 86.61 per cent in a year and risen 2.97 per cent since beginning of the year.
In a week, the stock has risen 6.29 per cent. The stock has gained 10.3 per cent in three sessions. KPIT Technologies shares are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Market cap of the firm rose to Rs 17,280 crore on BSE today. Total 2.21 lakh shares of the firm changed hands amounting to a turnover of Rs 13.77 lakh on BSE.
The deal is expected to be closed by the end of October this year, post fulfillment of customary closing conditions, and at the end of it, Technica Engineering will be fully owned by KPIT Technologies. The deal will be EPS accretive upon consolidation.
Kishor Patil, co-founder, CEO and MD of KPIT Technologies said, "Mobility industry is using software to drive innovation and is creating a post-vehicle sale business model driven by delivering services to end consumers. We are constantly looking for possibilities to help accelerate our client's vision. With Technica Engineering, we will strengthen value and scale of operations across the stack. We have common strategic clients who will benefit, and we also get access to leading disruptor mobility tech companies."
Technica Engineering specializes in production-ready system prototyping (combination of network system architecture, hardware prototyping, integration), automotive ethernet products, and tools for validation. It has presence in Spain, Tunisia, and the USA.
Meanwhile, Sensex tanked 527 points to trade at 58,929 and Nifty fell 163 points or 0.92 per cent to 17,555 in the afternoon session. Market was trading in the red taking cues from the Asian markets after the US Federal Reserve raised interest rates. The Fed raised rates by 75 basis points (bps) on Wednesday – the third such rise in a row – and signalled that it would continue to raise borrowing costs to fight inflation.
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