HCL Infosystems up 8% on business restructuring approval

HCL Infosystems, an India-based hardware and systems integrator, rose as much as 7.7 percent intraday on Tuesday on approval for business restructuring.

Yesterday the board of directors of the company have approved the business restructuring option recommended by the Finance Committee. The company said the restructuring of the businesses was with the objective of providing focused management orientation to each of the growth areas and to create a leaner organization for the hardware solutions business. According to the scheme, Hardware Solutions Business of the company will be transferred to a wholly owned subsidiary namely HCL System Integration Limited and learning business to a wholly owned subsidiary namely HCL Learning Limited. "Services business of the company will be moved to a wholly owned subsidiary namely HCL Care Limited," the company said. HCL Infosystems also approved the merger of HCL Infocom, a wholly owned subsidiary with self. Meanwhile, telecom distribution business would continue to be with the parent HCL Infosystems Limited, while the existing wholly owned subsidiary, Digilife Distribution and Marketing Services Limited, would continue to be engaged in distribution business of non-telecom products, the company added. At 13:21 hours IST, the stock rose 5.37 percent to Rs 41.20 amid large volumes on Bombay Stock Exchange. Also Read
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