HOV Services was locked at 20% upper circuit at Rs 152.55 at 14:11 IST on BSE after the company's board approved the sale of its entire investment in SourceHOV through its US based wholly owned unit HOVS LLC to promoters, affiliate/related parties.
The announcement was made during market hours today, 1 October 2014.
Meanwhile, the S&P BSE Sensex was down 49.19 points or 0.18% at 26,581.32.
The stock surged on high volumes. On BSE, so far 4.71 lakh shares were traded in the counter as against average daily volume of 60,666 shares in the past one quarter.
The stock's current price of Rs 152.55 is also its 52-week high for the counter. The stock hit a low of Rs 118.15 so far during the day. The stock had hit a 52-week low of Rs 25.65 on 30 September 2013.
The stock had outperformed the market over the past one month till 30 September 2014, surging 29.94% compared with the Sensex's 0.03% fall. The scrip had also outperformed the market in past one quarter, jumping 48.8% as against Sensex's 4.79% rise.
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The small-cap company has equity capital of Rs 12.50 crore. Face value per share is Rs 10.
HOV Services' board of directors at its meeting held on Tuesday, 30 September 2014, approved the sale of company's entire investment in SourceHOV through its US based wholly owned subsidiary HOVS LLC to promoters, affiliate/related parties. The board also approved the sale of company's entire investment in SourceHOV through its US based wholly owned subsidiary HOVS LLC to other potential buyers. Further, the board approved merger of SourceHOV and BancTec.
Shares of HOV Services were on a roll recently. The stock has rallied 62.2% in four trading sessions from a recent low of Rs 94.05 on 25 September 2014.
HOV Services during market hours on Monday, 29 September 2014 said that the SourceHOV Holdings, Inc, in which HOV Services through its wholly owned subsidiary HOVS, LLC holds a minority investment entered into an agreement with BancTec Group LLC.
Both SourceHOVE and BancTec are headquartered in Dallas, Texas. In the transaction, stockholders of BancTec will receive stock in SourceHOV, and SourceHOV will use a new credit facility to refinance existing indebtedness, redeem certain existing SourceHOV equity holders and provide additional working capital.
Closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to occur this year, HOV Services said in a statement.
HOV Services reported a net loss of Rs 0.08 crore in the quarter ended 30 June 2014, lower than net loss of Rs 0.18 crore in the quarter ended 31 March 2014. Net sales rose 0.61% to Rs 3.27 crore in the quarter ended 30 June 2014 over the quarter ended 31 March 2014.
HOV Services, operates as a hybrid between investment and diversified services corporation. The company has grown over the last decade through series of key acquisitions in target industries leveraging the global footprint and now has presence in the US, Canada, India, China, Mexico and the Philippines.
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