SSI spurts on approval for IT unit de-merger

DALAL STREET SPIKES

The share price of SSI surged on Thursday after the company received the Madras High Court' approval for the de-merger of its information technology business and subsequent merger of the latter with Scandent Network.

The stock, in intra-day deals, touched a high of Rs 195 before closing at Rs 189.65, up 1.89 per cent from its previous close. According to analysts, the stock has been active of late in anticipation of the court order in favour of the de-merger of its IT company.

The counter witnessed a volume of more than 5.24 lakh share on the Bombay Stock Exchange.

Sector analysts said the merged company, with a workforce of 1,100, is expected to benefit from SSI's strengths including strong government business and intellectual property rights as well as Scandent's offshore delivery model.

The stock has appreciated 75 per cent from a low of Rs 108.20 on June 23 to Thursday's close of Rs 189.65.