Majesco share price hits upper circuit on board's nod to sell US subsidiary

Majesco share price hit 5 percent upper circuit on July 21 after the company board agreed to sell its US subsidiary to private equity firm Thoma Bravo.

The stock, which has jumped almost 40 percent in the last three months, was trading at Rs 401.15, up Rs 19.10, or 5 percent, at 1007 hours.  There were pending buy orders of 1,009,936 shares, with no sellers available.

The Nasdaq-listed arm of the IT company will be sold at $13.1 apiece, a premium of around 74 percent to its closing price on July 17, according to the corporate announcement on exchanges. The deal values the company at $594 million.

The board of the directors at its meeting on July 20 approved the sale of the company’s entire stake/ investment in the US subsidiary pursuant to the merger, subject to the approval of the shareholders of the company and other regulatory and statutory approvals, as may be required, the company said in a filing to the exchanges.