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Aurionpro Solutions jumps after completing sale of IT services business in US

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Capital Market
Last Updated : Apr 05 2016 | 12:02 AM IST

Aurionpro Solutions jumped 6.62% to Rs 140.10 at 15:00 IST on BSE after the company announced the completion of sale of its IT services business in USA to Saicon Consultants Inc., a leading professional services company.

The announcement was made during market hours today, 4 April 2016.

Meanwhile, the S&P BSE Sensex was up 42.89 points or 0.17% at 25,312.53.

On BSE, so far 42,397 shares were traded in the counter as against average daily volume of 12,897 shares in the past one quarter. The stock hit a high of Rs 150.80 and a low of Rs 131.90 so far during the day. The stock hit a 52-week high of Rs 271.60 on 8 April 2015. The stock hit a 52-week low of Rs 103 on 12 February 2016. The stock had underperformed the market over the past one month till 1 April 2016, rising 2.57% compared with Sensex's 6.27% rise. The scrip had also underperformed the market in past one quarter, dropping 36.78% as against Sensex's 3.41% fall.

The small-cap company has equity capital of Rs 21.95 crore. Face value per share is Rs 10.

Aurionpro Solutions said that the sale is effective immediately. The sale is in line with its strategic direction to accelerate revenue growth of its high margin core businesses and divest non-core businesses. The deal allows the company to focus and grow its three core IP centric businesses-digital innovation, enterprise security and industry solutions for banking and logistics. The sold IT services business for USA generated approximately Rs 93 crore for the first nine months of financial year ended 31 March 2016 (FY 2016). The sale is concluded by Aurionpro Solutions Inc., a wholly owned US arm of the company for price of about $10 million or Rs 66 crore. The payment include upfront payments and deferred payments. The proceeds of the sale will be used towards working capital and accelerating debt reduction.

On consolidated basis, Aurionpro Solutions' net profit rose 13.82% to Rs 14.08 crore on 5.9% rise in net sales to Rs 187.28 crore in Q3 December 2015 over Q2 September 2015.

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Aurionpro Solutions is a technology solutions provider.

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First Published: Apr 04 2016 | 3:01 PM IST

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