Shares of Dev Information Technology hit its 52-week high of Rs 159.70 on June 21 after the Ahmedabad-based IT firm said LT1, a wholly-owned stepdown subsidiary of US-headquartered Lilikoi Holdings Inc, acquired a 51-percent stake in the company. The stock was trading 4.54 percent up at Rs 159 at 12.35 pm on the BSE.
The all-cash deal is estimated to be worth Rs 300 crore, as per reports.
Through acquisitions and in-house expertise, Lilikoi is creating a unique ecosystem to design, engineer, manufacture, and support their IoT devices, and seamlessly integrate various technologies, Dev IT said in a regulatory filing on June 20.
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This strategic acquisition will boost the company's presence in North American markets directly and tap into global business opportunities. It will facilitate growth in Digital Transformation services via cloud, blockchain, and other existing services while adding IoT-led business to the revenues, it added.
“…the Acquirer is seeking to acquire at least 51 percent (Fifty One percent) of the paid-up equity share capital of the Company through a combination of (i) Preferential Allotment, (ii) secondary acquisition from the Sellers…and (iii) acquisition of equity shares in the Open Offer,” it said.
The share purchase and subscription agreement (SPSA) between the parties was signed on June 16, the company had informed the exchanges earlier.
The shares of the company have been hitting its upper circuit of 5 percent ever since the deal was announced.
An Extraordinary General Meeting (EGM) of the company is scheduled to be held on July 16, 2023, to seek shareholders’ approval for increase in the authorised share capital of the firm, and issue of equity shares on a Preferential basis to the acquiring entity.
Shares of Dev IT are up 23 percent on YTD basis, and have doubled over the past year.
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