Quess Corp Limited is in focus today following an announcement from the company that it has signed agreements to acquire Manipal Integrated Services Private Limited's (MIS) facility management and catering businesses.
The stock, which hit a record high of Rs 704 on the National Stock Exchange on Tuesday, hovers near that mark now, is hovering around Rs 685 now (up 0.9%), after having advanced to Rs 702 earlier.
The Integrated Services provider said that it has approved the draft scheme of arrangement for such demerger of the facility management and catering businesses to Quess. The acquisition is expected to help strengthen Quess Corp's position in the integrated facility management space in India, Quess said in a press release.
The company will invest around Rs 220 crore initially by subscribing to CCPS of MIS for securing an interest in the Facility Management and Catering Businesses, development of the same and facilitating the demerger of the same businesses, the filing said.
The Facility Management and Catering businesses of MIS will subsequently be demerged into Quess pursuant to a Scheme of Arrangement that will see Quess issue approximately seven million one hundred and fifty thousand equity shares to equity shareholders of MIS.
MIS serves more than 120 clients across Healthcare, Education and BFSI sectors, has a headcount of over 17,000 associates, expects a revenue of Rs 426.5 crore in financial year 2017.
Quess Corp reported a strong 65.9% year on year jump in consolidated net profit at Rs 30.10 crore for the quarter ended September 30, 2016. The company had posted a profit of Rs 18.16 crore in the quarter ended September 30, 2015.
It saw a revenue growth of 26.9% (YoY) to Rs 1018 crore from Rs 802 crore in the second quarter of the previous year. Earnings before interest, taxes, depreciation, and amortization margin improved 69 basis points to 5.4% as against 4.7% in the year ago quarter.