HOV Services surged 4.89% to Rs 126.60 at 14:56 IST on BSE, with the stock extending Monday's 20% rally triggered by the SourceHOV Holdings, Inc. entering into an agreement with BancTec Group LLC.
Meanwhile, the S&P BSE Sensex was down 40.20 points or 0.15% at 26,556.91.
The stock surged on high volumes. On BSE, so far 5.16 lakh shares were traded in the counter as against average daily volume of 52,319 shares in the past one quarter.
The stock hit a high of Rs 138 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 117.55 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 29 September 2014, surging 23.35% compared with Sensex's 0.15% fall. The scrip had also outperformed the market in past one quarter, jumping 49.29% as against Sensex's 5.96% rise.
The small-cap company has equity capital of Rs 12.50 crore. Face value per share is Rs 10.
Shares of HOV Services have rallied 25.84% in two trading sessions from Rs 100.60 on 26 September 2014, after the company 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. The stock had rallied by the maximum permissible level of 20% to settle at Rs 120.70 on Monday, 29 September 2014.
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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