Sagarsoft India, which had closed on Friday at Rs.173.90, opened 10% higher, hitting the UC of the day and a new 52-week high at Rs.191.25, where it now remains frozen. Volumes were up almost 3 times.
The market is happy with its announcement that it is acquiring 100% stake in IT CATS, USA at a value of Rs.16 crore. This will be through swap of shares by way of preferential allotment for which it will issue 2 lakh equity shares at a price not below Rs.254.
IT CATS is a full-service IT consulting company, It provide IT personnel with a broad range of technical skills, including but not limited to ERP, client/server and web based application and database development. This company is owned by Mr.Satish Kalva, who is also a nonexecutive director of Sagarsoft and hence it will be treated as a related party transaction.
The transaction is expected to be completed by end of August, 2021.
The company had ended Q4FY21 with a 24% (YoY) rise in revenue at Rs.11 crore and net profit was up 191% at Rs.1.40 crore. Market cap stands at Rs.106 crore.