GSS Infotech hit an upper circuit of 5% at Rs 133.40 after the company's board approved the acquisition of an Indian "farm to store" company Polimeraas, with a combination of stock and cash.
Polimeraas is valued at Rs 250 crore. The merger of Polimeraas Agros with GSS Infotech will be through a scheme transaction subject to the approval of the shareholders, stock exchanges and regulatory authorities.Bhargav Marepally CEO of GSS Infotech said: "GSS has always been focused not just growth but on strategic growth opportunities that take advantage of a changing business environment. B2C e-commerce opportunities leveraging core technology strength has always been an integral part of GSS's inorganic growth strategy to drive growth. This, therefore, is clearly the most logical step to take bearing in mind the explosive growth we are going to see for e-commerce especially for online and hyper local fulfilment. Polimeraas stores are currently ideal dark stores for a hyper local rapid delivery fleet. We see meaningful opportunities to improve efficiency across the value chain by leveraging data analytics. We are also going to focus on creating tech-enabled best in class retail experiences."
Polimeraas is engaged in procurement, distribution, and sale of agricultural products, fully processed and semi processed food and other home consumables based out of Hyderabad. Polimeraas operates with 75 stores across two locations Hyderabad and Bangalore with an average footfall of 21000 per store per month. The company plans to expand its presence by 100+ brick and mortar stores as well as launch online fulfilment using mobile applications.
On a consolidated basis, GSS Infotech reported net profit of Rs 1.43 crore in Q2 September 2021 as against net loss of Rs 1.95 crore in Q2 September 2020. Net sales rose 4.15% to Rs 31.12 crore in Q2 September 2021 over Q2 September 2020.
Hyderabad-based GSS Infotech is an Information Technology company, specializing in application development, e-commerce & cloud, security, remote infrastructure management and application management services.
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