Choppy ride for Smartlink Network
The deal, however, raised many eyebrows as the foreign company valued the business at one-and-a-half-times the total market capitalisation of the Indian company as a whole.
By ET Bureau | Updated:
Smartlink Network Systems (SNS), a small-cap stock, saw a highly volatile movement amid hectic intra-day activity triggered by the company’s announcement to sell its structured cabling business, Digilink, to Schneider Electric for Rs 503 crore.
The deal, however, raised many eyebrows as the foreign company valued the business at one-and-a-half-times the total market capitalisation of the Indian company as a whole, which was Rs 202 crore as on Thursday. Early trading saw SNS share hit the 20% upper circuit to touch the day’s high of Rs 93.95.
However, the price came off sharply in subsequent trading on major selling pressure triggered by concerns over the prospects of the company after the sale of Digilink business. The stock eventually closed nearly 14% down at Rs 67.6. Over 64 lakh shares changed hands compared with the two-week average of 9 lakh shares on the BSE.
(Contributed by Vijay Gurav)
The deal, however, raised many eyebrows as the foreign company valued the business at one-and-a-half-times the total market capitalisation of the Indian company as a whole, which was Rs 202 crore as on Thursday. Early trading saw SNS share hit the 20% upper circuit to touch the day’s high of Rs 93.95.
However, the price came off sharply in subsequent trading on major selling pressure triggered by concerns over the prospects of the company after the sale of Digilink business. The stock eventually closed nearly 14% down at Rs 67.6. Over 64 lakh shares changed hands compared with the two-week average of 9 lakh shares on the BSE.
(Contributed by Vijay Gurav)
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