Mumbai: Defying the weak broader market, shares of Patni Computer Systems climbed by up to 18 percent in early trade on the bourses on Thursday after US-based promoter iGate announced plans to delist the domestic company from Indian bourses by mid-2012 to obtain full ownership.
Despite a weak opening, the company's shares swiftly recovered and jumped by 18.1 percent to Rs 459 on the BSE. Buying momentum also intensified at the company's counter on the NSE, where the scrip surged by 11.9 percent to an early high of Rs 432.40.
However, the scrip saw some of the gains pared in later trade and was being quoted at Rs 416.85, up 7.26 percent from its previous close on the BSE, at 1010 hours.
US-based iGate, which acquired Patni Computer Systems earlier this year, plans to delist the domestic company from Indian bourses by mid-2012.
Patni's American Depository Receipts (ADRs) would also be delisted from the New York Stock Exchange.
iGate intends to commence, through its subsidiaries Pan-Asia iGate Solutions and iGate Global Solutions Ltd, a process that could lead to the delisting of its Indian subsidiary, Patni Computer Systems, the US-based company said in a statement.
The announcement was made after market hours on Wednesday.
iGate had acquired a majority stake in Patni in January this year for USD 1.2 billion in one of the largest deals in the Indian IT sector. Post the open offer, iGate now holds a stake of about 82 percent in Patni.
The surge in the stock was in sharp contrast to the gloomy market conditions, with the benchmark Sensex trading at 16,676.15, down 99.72 points, on the BSE at 1010 hours.
First Published: Thursday, November 17, 2011, 11:23