HOV Services hit an upper circuit limit of 5% to Rs 87.40 at 14:47 IST on BSE, extending Wednesday's 5% jump triggered by SourceHOV LLC appointing an investment bank to explore various strategic options.
The announcement was made before market hours on Wednesday, 1 January 2014. The stock jumped 5% to Rs 83.25 on Wednesday. The stock has risen 10.21% in two sessions from Rs 79.30 on Tuesday, 31 December 2013.
Meanwhile, the BSE Sensex was down 228.95 points, or 1.08%, to 20,911.53.
On BSE, so far 1,476 shares were traded in the counter, compared with an average volume of 35,016 shares in the past one quarter.
The scrip opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at that level at Rs 87.40 so far in the day. The stock hit a 52-week high of Rs 97.50 on 16 December 2013. The stock hit a record low of Rs 20 on 22 March 2013.
The stock had outperformed the market over the past one month till 1 January 2014, rising 44.16% compared with the Sensex's 1.68% rise. The scrip had also outperformed the market in past one quarter, rising 177.50% as against Sensex's 8.32% rise.
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The small-cap company has an equity capital of Rs 12.49 crore. Face value per share is Rs 10.
HOV Services said that SourceHOV LLC has appointed Morgan Stanley & Co LLC to explore various strategic options. No other details were provided. HOV Services through its US-based wholly-owned subsidiary owns stake in SourceHOV LLC. The appointment of investment bank was approved by SourceHOV on 29 December 2013, HOV Services said in a statement.
SourceHOV is a global provider of transaction processing solutions, strategic consulting and data analytics services.
In March 2013, Citi Venture Capital International had invested in SourceHOV, buying out the interest ownership of affiliates of Apollo Global Management, LLC and certain minority holders' in SourceHOV.
HOV Services owns a 27.2% stake in SourceHOV while Citigroup Venture Capital International owns 65% with operational and financial control.
HOV Services' net profit fell 20% to Rs 0.40 crore on 2.77% fall in net sales to Rs 3.15 crore in Q3 September 2013 over Q2 June 2013.
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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