Geometric in volatile mood

Geometric is seeing some volatile action to day morning. The stock hit a new 52-week high today morning at Rs.207 with some big volume of almost 7 lakh shares trading compared to 4 lakh shares over two-weeks average. But soon after, it slipped into the red and it is now down almost 1% at Rs.189.

There is unconfirmed news that Godrej which owns 31.23% stake and Manu Paria who owns 7.23% in the company have hired JM Financial to sell their stake. And news is that Tech Mahindra, Capgemini, HCL Tech, L&T Infotech and GlobalLogic are some of the companies eyeing this stake. Geometric hopes to raise around Rs.2000 crore from this sale and has reportedly started at over Rs.300/share.

There could truth in this news as it was a known fact that the Godrej family and Manu Paria were looking to exit the company and were scouting around for quite some time for buyers.

Geometric was incorporated as part of the Godrej Group in 1984 and in 1994, it was spun off into an independent company. The IT company provides solutions for global engineering services, product lifecycle management solutions, embedded systems solutions and digital technology. Rakesh Jhunkhunwala and his wife Rekha, hold 19% stake in Geometric.