TCS shares gain on of French company acquisition
Mumbai: Bucking the overall weak trend, shares of IT major Tata Consultancy Services on Tuesday settled with over one percent gain, after the company said it will acquire France-based enterprise solutions provider Alti SA for 75 million Euro (about Rs 533 crore) in an all-cash deal.
Even as IT peers Wipro and Infosys had a bad day in the markets, shares of the Sensex constituent ended 1.10 percent higher at Rs 1,497.30 on heavy purchases after the deal announcement. During intra-day trading, the stock surged 2 percent to Rs 1,512.
At the NSE, the scrip closed at Rs 1,500, up 1.30 percent.
"TCS was seen in positive after news of its making a deal of buying French IT services company Alti SA," said Nidhi Sarawat, Senior Research Analyst, Bonanza Portfolio Limited.
The acquisition will help transform TCS into a major player in France, the third-largest IT services market in Europe, and provide the firm access to blue-chip French and European clients in banking, luxury, manufacturing and utilities sectors.
TCS in a release said "...It has signed definitive agreements for the acquisition of 100 percent equity shares in Alti SA, an IT services company in France, for a value of 75 million euro in an all-cash transaction."
The acquisition will strengthen TCS's ability and footprint to service its customers in France and other regions in Europe, it added.
Alti SA is a leading French technology services firm with expertise in IT services including Enterprise Solutions, Assurance and CRM solutions.
Meanwhile, in the stock market, the BSE benchmark Sensex ended at 18,226.48, down by 211.30 points.