Shares of Educomp Solutions today surged by 12 per cent after the company announced selling its entire stake in Wiz Learn Technology, Singapore, to V-cube Global Services for an undisclosed amount.
The stock soared 11.85 per cent to settle at Rs 12.74 on the BSE. During the day, it zoomed 19.92 per cent to Rs 13.66.
On the NSE, shares of the company climbed 11.4 per cent to end at Rs 12.70.
On the volume front, 22.52 lakh shares of the company changed hands on the BSE and over 49 lakh shares were traded on the NSE during the day.
The proceeds of the acquisition will be used to repay existing debt to Axis bank, Educomp said.
"Educomp Intelliprop Ventures Pte Ltd, subsidiary of Educomp Solutions Ltd, has sold its entire stake in Wiz Learn Technology Pte Ltd, Singapore to V-cube Global Services Pte. Ltd," Educomp Solutions said in a BSE filing.
"Further, corresponding to such sale the investment of Wiz Learn Technology Pte Ltd in 3 subsidiaries naming Singapore Learning.Com Pte Ltd, Pave Education Pte Ltd and Wiz Learn Pte Ltd will also get sold," the company added.
Educomp Solutions has invested in Wiz Learn Technology Pte Ltd in 2007.
While the company did not elaborate on the deal size or the percentage stake sold, it said "the present sale will yield a return of 57 per cent on our original investment".
