HCL Technologies shares jump 5% after DWS deal

HCL Technologies shares jumped nearly 5 per cent on Monday after the company said it will acquire Australian IT solutions firm DWS, a move that will help the Indian company strengthen its position in the Australia and New Zealand markets. Shares of the company rose by 4.75 per cent to Rs 849.70 -- its 52-week high -- on the BSE.

It was the top gainer in the Sensex pack.

On the NSE, it gained 4.84 per cent to Rs 849.90 -- its one-year high.

In a regulatory filing, HCL Technologies said the total equity value pay-out will be 158.2 million Australian dollars (about Rs 850.33 crore) after considering a total number of shares at 131.83 million on a fully-diluted basis.

The shareholders of DWS will also get a dividend of 0.03 Australian dollars per share which was declared by the company in its recent announcement of annual corporate earnings for FY20 (June-end), it added.

"The acquisition of DWS will strongly enhance HCL's contribution to digital initiatives in Australia and New Zealand while strengthening HCL's client portfolio across key industries," HCL said in a statement.

The filing said acquisition will be done by a process of scheme of arrangement to be approved by the court(s) in Australia, and the deal will also be subject to the approvals of Australia's Foreign Investment Review Board, Australian Competition Commission and New Zealand's Overseas Investment Office.