NIIT Technologies’ promoters were reported to be considering a stake sale and considering an exit from the mid-size IT firm
This week was an interesting one for the technology industry in India, with the US making an important change to the way H-1B visas are granted and HCL Technologies making the largest-ever acquisition by an Indian IT company on Friday.
Fresh H-1B visa woes for techies
Last Saturday, the US immigration agency said it will require applicants of H-1B visa to register electronically instead of sending physical copies. It also said foreigners studying in the US will have a better chance of getting H-1B visas.
While the move is expected to have a negative impact on the Indian technology services industry, which has for long been a beneficiary of the H-1B work visa programme, it is likely to be an opening for Indians studying higher degrees in the US, experts Moneycontrol spoke to said.
NIIT Tech and MindTree in the news for reported stake sales
NIIT Technologies’ promoters were reported to be considering a stake sale and considering an exit from the mid-size IT firm, according to a report in the business paper The Economic Times.
Among private equity funds, the company has reportedly sounded out Bain Capital, Blackstone, Carlyle, Apax Partners and Advent for the purpose, ET reported. NIIT Technologies, however, denied the report and called it unsubstantiated.
The business paper Mint reported that another mid-sized firm, MindTree’s largest investor and Cafe Coffee Day founder VG Siddhartha and a few other large shareholders are looking to sell their stake.
The company has previously denied similar reports but MindTree chairman told Mint that financial investors have the “prerogative to monetise their stake based on their individual priorities”.
Indian smartphone users set to double in five years
Cisco released a study that found that the number of smartphone users in India is expected to double to 829 million by 2022 from 404.1 million in 2017.Cisco's Visual Networking Index (VNI) said the trend was visible from the data consumption trends in India, where Internet networks are expected to carry 646 petabytes of data per day by 2022, up from 108 petabytes of data per day in 2017.
HCL Technologies in the news-signs biggest ever deal by Indian IT firm worth $1.8 bln
On Friday, the company made the largest ever acquisition by an Indian IT firm- worth $1.8 billion- to buy seven products from IBM.
The two companies also have a long standing IP-partnership for five of the products acquired.
The deal, however, failed to enthuse investors as the market awaits greater clarity on the contours of the deal.
The stock fell as much as 7.6 percent after the deal announcement on Friday.
Analysts and industry watchers feel HCL will have to add significant capacity to be able to sell these products without the IBM banner.
Separately, HCL Technologies Australia head Michael Horton told Moneycontrol that the company is open to acquisitions and partnering with local companies in the region.YouTube releases 2018 trends