HFCL shares gain 2% on acquiring 15% stake in Nivetti Systems

HFCL share price gains more than 2 percent in the early trade on January 9 as the company buys equity stake in Nivetti Systems.

The company has signed a share subscription agreement on January 7, 2020, with Nivetti Systems Private and its existing promoters to acquire 15 percent of the diluted paid-up equity share capital of Nivetti, in one or more tranches, by way of subscribing to its fresh equity.

The fresh equity shares of Nivetti will be acquire at a total cash consideration of Rs 15.95 crore.

The acquisition would result in increasing company's offerings of best in class networking and cyber security products & solutions resulting in growth in its Telecom, IT, Cyber Security & Surveillance business, said HFCL in release.

The said acquisition doesn't require governmental or regulatory approvals and will get complete by October, 2020.

At 09:37 hrs HFCL was quoting at Rs 17.65, up Rs 0.35, or 2.02 percent on the BSE.