TeamLease Services surges after announcing acquisition of Keystone Business Solutions

TeamLease Services jumped 4.07% to Rs 914.40 at 10:19 IST on BSE after the company said it has signed a definitive agreement to acquire 100% shares in Keystone Business Solutions.

The announcement was made after market hours yesterday, 16 January 2017.

Meanwhile, the S&P BSE Sensex was down 2.15 points or 0.01% at 27,286.02.

On the BSE, 3,363 shares were traded on the counter so far as against the average daily volumes of 2,634 shares in the past one quarter. The stock had hit a high of Rs 935.80 and a low of Rs 882 so far during the day.

The stock had hit a record high of Rs 1,207.70 on 16 February 2016 and a record low of Rs 790 on 28 April 2016. The stock had underperformed the market over the past one month till 16 January 2017, declining 1.47% compared with the Sensex's 3.01% rise. The scrip had also underperformed the market over the past one quarter declining 14.87% as against the Sensex's 1.39% fall.

The small-cap company has equity capital of Rs 17.10 crore. Face value per share is Rs 10.

TeamLease Services said that it has signed a definitive agreement to acquire 100% shares in Keystone Business Solutions, a company incorporated under Companies Act, 1956 through its wholly owned subsidiary, TeamLease Staffing Services. The proposed acquisition does not fall within related party transaction and the promoters of the company have no interest in the entity proposed to be acquired. The consideration involved in the transaction is Rs 8.2 crore payable in cash. The indicative time period for completion of the acquisition is on or before 31 January 2017.

Keystone Business Solutions was incorporated on 25 June 2009. It offers staffing solutions. It operates through its registered office situated in Bangalore.

TeamLease Services' consolidated net profit rose 57.9% to Rs 9.03 crore on 11.6% rise in net sales to Rs 708.67 crore in Q2 September 2016 over Q2 September 2015.

TeamLease Services provides human resource services. Its services span the entire people supply chain of human resources, covering employment, employability and education. Its employment services include staffing solutions, recruitment services and compliance services. The company's employability offerings include different types of learning and training solutions for retail, institutional and enterprise customers.

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