HCL Tech surges over 4% after denial of $10-billion stake sale report

MUMBAI: Shares of HCL Tech surged after HCL Corporation, the holding company for HCL Technologies, denied a Wall Street Journal report that said its founder Shiv Nadar was seeking potential buyers for his $10 billion stake in the company.

"HCL Corporation denies any plans to exit HCL Technologies," it said in a statement.

Nadar at present holds 62 per cent in HCL Tech which is valued at $10 billion.

According to the news report, Mr Nadar, who founded HCL in 1991, has received bids in the past but has been saying he has no plans to sell.

But it was widely speculated that the 69-year-old is open to selling his stake because his only child, daughter Roshni Nadar, is not interested in continuing in the business.

G Chokkalingam, Founder, Equinomics Research & Advisory, advises investors to hold on to the stock.

“Relatively, it is still much cheaper than companies like TCS. Secondly, if election results are not up to expectation then there is going to be lot of pressure on the currency. So, till the elections results are out in a favourable manner all the investors should hold on to all IT stocks including HCL Tech,” he said to ET Now.

The stock ended at Rs 1,540, up 4.56 per cent, on the NSE. It touched a high of Rs 1,546.40 and a low of Rs 1,471 in trade today.