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NIIT Tech share falls over 3%, NIIT rises 20% on proposed deal with Baring PE

BusinessToday.In     April 8, 2019

NIIT Ltd share price hit upper circuit to almost 20 per cent in trade today after the firm declared that Baring Private Equity Asia has signed a definitive agreement for the purchase of approximately 18.35 million shares amounting to 30 per cent stake of NIIT Technologies Ltd. from NIIT Ltd. and other promoter entities and make an open offer to public shareholders.

With a gap-up chart pattern today, the share price of NIIT Ltd. opened at a 9.43 per cent gain from the previous close of Rs. 95.45 on BSE and jumped almost 20 per cent to hit day's high at 114.50.

At 2:11 pm, the stock was trading 17 per cent up at Rs 112.10 on both the trading platforms.

The stock has seen rising investor participation with 44 lakh shares and 303 lakh shares changing hands on BSE and NSE, both above the 5-day average volume figures.

With a consecutive rise at 27 per cent in 2 days, the stock trades higher than 5, 20, 50, 100, and 200-day moving average.

On the contrary, NIIT Tech shares slipped 2.7 per cent to Rs. 1312.20 in early trade. Later following media reports about the press release, the stock slid further down 3.89 per cent to Rs 1297.

NIIT Technologies Ltd. share price has moved below its 30 day and 50 day simple moving average today. At 2:11 pm, the stock was trading 3.4 per cent down at Rs.1298.50 on BSE and down 3.38 per cent at Rs. 1302 on NSE. More than 14 lakh shares have changed hands on NSE and around 46,642 shares on BSE, respectively.

Baring Private Equity Asia (BPEA) plans to acquire up to 16,229,173 equity shares, constituting 26 per cent of the expanded voting share capital, at a price of Rs.1,394 per share aggregating to a total consideration of Rs. 22,623,467,162.

In accordance with the Securities and Exchange Board of India (SEBI) regulations, BPEA will make an open offer to the public shareholders of NIIT Technologies for purchase of up to 26 per cent additional shareholding at a price of Rs 1,394 per share - taking the total shareholding to approximately 56 per cent.

(Edited by Rupa Burman Roy)

Also Read: Share Market Live: Sensex falls 92 points, Nifty below 11,650; Bajaj Finance, Asian Paints, Reliance Industries top losers

Also Read: Baring Private Equity Asia to acquire 30% stake in NIIT Tech for Rs 2,627 crore


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