Geomteric surges as HCL Tech looks to buy 38% stake

NEW DELHI: Shares of Geomteric ended higher by 11.26 per cent in trade on Wednesday amid reports that HCL Technologies may enter into a binding agreement with the smallcap IT company to buy up to 38 per cent of its promoters' stake in the company.

HCL Tech will buy the stake at Rs 210-220 per share this week, ET Now reported.

At 2.45 pm, the stock was trading 8.8 per cent higher at Rs 195.35. The upper band of the offer price is around 13 per cent higher than the prevailing price. The price values the company at Rs 1,426 crore. At the prevailing price, the market values the company at Rs 1,267 crore.

Ace investor Rakesh Jhunjhunwala has been a key investor in the company, who along with his wife holds around 18.9 per cent stake in Geometric.

The transaction will trigger 26 per cent open offer in geometric, ET Now flashed.