Scandent lists at Rs 190, surges to Rs 223

Software firm Scandent Solutions Corporation surged to Rs 223.80 within minutes of commencement of trading after debuting at Rs 190 on BSE. The stock finally closed at Rs 206.20, with volumes accounting for more than 51.9 lakh shares on BSE.

Scandent Solutions Corporation has been formed by the merger of IT services business of SSI Ltd and Scandent Solutions. Consequent to the demerger, one new share of Scandent was issued for each share of SSI.

The record date for the purpose was 20th October. Pursuant to the court approvals, Scandent made an application to BSE and the Securities and Exchange Board of India for obtaining their clearance for the listing of its existing shares and the shares to be issued to the shareholders of SSI.

The Company has also obtained in principle approvals from the Chennai and Ahmedabad Stock Exchanges for listing of shares. Scandent Group promoters own 42 per cent of the total equity in Scandent Solutions Corp and the balance is with the public.

A managing director with a domestic broking firm said, "The Scandent stock has listed little bit higher than the expected price. With good clients and higher reputation of promoters, they were expected to have a better listing in the stock. But looking at the present valuations of financial year 2005 earnings around 32 to 35 times, it is looking quiet stretched."