IT major Tata Consultancy Services (TCS), today said it plans to hire 37,000 professionals for its domestic and overseas markets through campus placements in the next fiscal. Hiring ratio will be around 54:46 trainee and lateral respectively.
The company had hired 27,500 professionals through campus recruitment last year.
The country's largest software exporter said it has hired 50,000 personnel in the nine-month period ended December 2010 and expects to add another 12,000-15,000 in Q4.
TCS added 20,219 people (gross) during the quarter (Q3 FY 11), its highest addition yet, taking its total headcount to 1,86,914 at the end of the December quarter.
Sunday, January 23, 2011
GM adding 650-plus jobs at Michigan plant
General Motors Co . will add a shift and more than 650 jobs at its assembly plant in Flint where it makes the hot-selling GMC Sierra and Chevrolet Silverado pickup trucks, a person familiar with the plan said Saturday. The move is yet another sign that truck sales are on the rise for the recovering automaker.
An announcement is scheduled for Monday and comes as Chevy sales to small businesses have increased for three straight months, which GM says is an indication that small businesses across the country are beginning to reinvest.
The Detroit News reported earlier Saturday about the additional jobs at the factory.
The plant, which employs more than 2,000 hourly and salaried workers, builds the heavy-duty Chevrolet and GMC Sierra crew and regular cab trucks and the light-duty Chevrolet Silverado crew and regular cab trucks.
The additional workers will come from GM's pool of laid-off workers, so no new employees will be hired, the person briefed on the announcement said. In the fourth quarter of last year, GM had about 3,500 laid-off workers in the pool nationwide.
There will be no added investment at the plant because GM is adding a third shift that will use the same equipment as the first two shifts.
A message seeking comment was left by the AP on Saturday with Ben Mata, president of United Auto Workers Local 598, which represents the plant.
The birthplace of GM, which sits 50 miles (80 kilometers) northwest of the company's headquarters in Detroit, Flint was once was a powerful auto manufacturing town, but its economy and population have steadily declined over the past few decades. Flint Assembly opened in 1947 when the city was in a much different situation
An announcement is scheduled for Monday and comes as Chevy sales to small businesses have increased for three straight months, which GM says is an indication that small businesses across the country are beginning to reinvest.
The Detroit News reported earlier Saturday about the additional jobs at the factory.
The plant, which employs more than 2,000 hourly and salaried workers, builds the heavy-duty Chevrolet and GMC Sierra crew and regular cab trucks and the light-duty Chevrolet Silverado crew and regular cab trucks.
The additional workers will come from GM's pool of laid-off workers, so no new employees will be hired, the person briefed on the announcement said. In the fourth quarter of last year, GM had about 3,500 laid-off workers in the pool nationwide.
There will be no added investment at the plant because GM is adding a third shift that will use the same equipment as the first two shifts.
A message seeking comment was left by the AP on Saturday with Ben Mata, president of United Auto Workers Local 598, which represents the plant.
The birthplace of GM, which sits 50 miles (80 kilometers) northwest of the company's headquarters in Detroit, Flint was once was a powerful auto manufacturing town, but its economy and population have steadily declined over the past few decades. Flint Assembly opened in 1947 when the city was in a much different situation
Tata Steel FPO over-subscribed 5.97 times on final day
The follow-on public offer (FPO) of Tata Steel garnered a smart response from the investors, with the issue getting over-subscribed 5.97 times on the final day.
As per the data available on the National Stock Exchange website till 1700 hrs, the Tata Steel FPO received bids worth 29.06 crore shares against 4.8 crore equities on offer, thereby, generating demand worth a whopping Rs 17,726.6 crore.
The company had fixed the price band at Rs 594-610 a share for its FPO offer that opened for subscription on January 19. The offer closed on 21 Jan.
Strong fundamentals of the company and the lucrative pricing of the offer saw the FPO generating great demand from the investors.
In the qualified institutional investors category, the offer was subscribed 0.67 times, while it got 0.20 times subscribed in the retail individual investors category.
With the FPO of 5.7 crore shares, which includes 83.25 lakh anchor investor shares, the company will garner Rs 3,477 crore at the higher end of the price band, while at the lower end of price band, it will raise Rs 3,385 crore. Tata Steel intends to use the FPO proceeds to fund its ongoing expansion project in Jamshedpur as well as for repaying its debt.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Deutsche Equities (India) Pvt Ltd, HSBC Securities And Capital Markets (India) Pvt Ltd, RBS Equities (India) Limited, SBI Capital Markets Ltd, Standard Chartered Securities (India) Ltd are the book running lead managers to the offer.
In November, the Tata Steel board had approved a proposal to raise up to Rs 7,000 crore ($1.5 billion) through various instruments. Subsequently, on December 24, the company secured shareholders'' nod to raise a maximum of Rs 5,000 crore.
As per the data available on the National Stock Exchange website till 1700 hrs, the Tata Steel FPO received bids worth 29.06 crore shares against 4.8 crore equities on offer, thereby, generating demand worth a whopping Rs 17,726.6 crore.
The company had fixed the price band at Rs 594-610 a share for its FPO offer that opened for subscription on January 19. The offer closed on 21 Jan.
Strong fundamentals of the company and the lucrative pricing of the offer saw the FPO generating great demand from the investors.
In the qualified institutional investors category, the offer was subscribed 0.67 times, while it got 0.20 times subscribed in the retail individual investors category.
With the FPO of 5.7 crore shares, which includes 83.25 lakh anchor investor shares, the company will garner Rs 3,477 crore at the higher end of the price band, while at the lower end of price band, it will raise Rs 3,385 crore. Tata Steel intends to use the FPO proceeds to fund its ongoing expansion project in Jamshedpur as well as for repaying its debt.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Deutsche Equities (India) Pvt Ltd, HSBC Securities And Capital Markets (India) Pvt Ltd, RBS Equities (India) Limited, SBI Capital Markets Ltd, Standard Chartered Securities (India) Ltd are the book running lead managers to the offer.
In November, the Tata Steel board had approved a proposal to raise up to Rs 7,000 crore ($1.5 billion) through various instruments. Subsequently, on December 24, the company secured shareholders'' nod to raise a maximum of Rs 5,000 crore.
SBI awaits govt nod for Rs 20,000 cr rights issue
State Bank of India (SBI) chairman O P Bhatt today said the bank will not be able to raise Rs 20,000 crore from rights issue unless it receives government nod for the fund raising programme by the first week of February.
In case of some delay in government approval, he said, bank might seek waiver of norms from market regulator Securities and Exchange Board of India (SEBI) to ensure that rights issue goes through in the current fiscal itself.
"SEBI can waive the mandatory time period under special provisions and if it does then the issue can take place in the current fiscal.
Bhatt also exuded confidence that SBI rights issue would sail through comfortably despite poor market sentiments witnessed at Bombay Stock Exchange and National Stock Exchange in the recent past. SBI has been planning to raise resources through rights issue to augment its lending operations.
In case of some delay in government approval, he said, bank might seek waiver of norms from market regulator Securities and Exchange Board of India (SEBI) to ensure that rights issue goes through in the current fiscal itself.
"SEBI can waive the mandatory time period under special provisions and if it does then the issue can take place in the current fiscal.
Bhatt also exuded confidence that SBI rights issue would sail through comfortably despite poor market sentiments witnessed at Bombay Stock Exchange and National Stock Exchange in the recent past. SBI has been planning to raise resources through rights issue to augment its lending operations.
Saturday, January 22, 2011
Indian names in Swiss bank disclosure to WikiLeaks?
etails of Swiss bank accounts given to WikiLeaks by private banker-turned-whistleblower Rudolf Elmer has a few Indian names.
The data revealed names of Indian entities including two apparently linked firms — Annapurna Convertible and Anna Investments — and two individuals Asad Ali Khan and Zahida Ali Khan .
The story was reported by the television channel, Headlines Today, which said that it was not in a position to verify the details. Elmer is a former employee of Swiss bank Julius Baer and the bank has said he had leaked the accounts motivated by unfulfilled career expectations.
Although information is sketchy, it might lead to more leads.
Annapurna Convertibles reportedly has $85 million and Anna Investments $9.7 million in Julius Baer bank. These are among the 2,000 names in two discs Rudolf Elmer gave WikiLeaks.
These are believed to be account details of prominent people and WikiLeaks founder Julian Assange has promised to provide details.
The data is not yet available on the WikiLeaks website. It was held on two discs handed over by Elmer at a press conference in London. Assange promised full disclosure once information had been vetted.
Elmer is scheduled to go on trial in Switzerland on Wednesday for breaking bank secrecy laws.
The banker, who has given data to WikiLeaks before, was fired from Julius Baer in 2002
The data revealed names of Indian entities including two apparently linked firms — Annapurna Convertible and Anna Investments — and two individuals Asad Ali Khan and Zahida Ali Khan .
The story was reported by the television channel, Headlines Today, which said that it was not in a position to verify the details. Elmer is a former employee of Swiss bank Julius Baer and the bank has said he had leaked the accounts motivated by unfulfilled career expectations.
Although information is sketchy, it might lead to more leads.
Annapurna Convertibles reportedly has $85 million and Anna Investments $9.7 million in Julius Baer bank. These are among the 2,000 names in two discs Rudolf Elmer gave WikiLeaks.
These are believed to be account details of prominent people and WikiLeaks founder Julian Assange has promised to provide details.
The data is not yet available on the WikiLeaks website. It was held on two discs handed over by Elmer at a press conference in London. Assange promised full disclosure once information had been vetted.
Elmer is scheduled to go on trial in Switzerland on Wednesday for breaking bank secrecy laws.
The banker, who has given data to WikiLeaks before, was fired from Julius Baer in 2002
Mobile Number Portability : Think before you switch
With mobile number portability ( MNP ) becoming operational from Thursday, telecom consumers now have the choice of switching their operator without having to change their mobile number. This facility is available to both postpaid and prepaid customers and subscribers of GSM as well as CDMA service. The only restriction is that you can change your operator without changing your number only within your current service area. Which means subscribers cannot take their Delhi number to an operator in Mumbai . They can only change their operator within Delhi.
The cost of porting a number to a new operator is Rs 19, with the maximum porting time capped at 7 working days by telecom regulator Trai except in Jammu and Kashmir, Assam and North East service areas, where it will be 15 working days. However , consumers will have to remain with the new operator for three months before moving on.
MNP has been delayed by 3 years, leaving many consumers anxious . Several subscribers, who feel disappointed with billing, customer care, and overall service delivery, have been waiting for this moment . But the real question is whether you should take the plunge and switch loyalties or not. Will the switch really be worth your trouble?
The real reason for change would be to access better quality of service or improved customer care and of course, the proposition of a better tariff package. This, however,will occur only if operators believe that the churn out of their subscriber base will be so high that they need to improve their service or customer care, etc. However , surveys have revealed that the net effect of number portability is practically negligible . This means most large operators gain and lose roughly the same number of subscribers, taking away any incentive to dramatically change quality of service or customer care or pricing owing to the threat of losing subscribers or the option of gaining subscribers.
For the consumer, this could mean you might switch your operator, but based more on a perception of improvement rather than a real difference. Trai’s September 2009 data suggests that at a pan-India level, the call set up success rate was upwards of 97.26%—the lowest being in UP (East) and the highest at 99.99% in Mumbai . Similarly the call drop rate according to Trai is less than 3% across the country with the highest at 1.9% in Rajasthan and the lowest at 0.42% in Orissa. In fact, the difference between GSM and CDMA operators is also negligible .
Further, all operators across the country score upwards of 90% with regards to the parameter called connection with good quality voice with the highest in UP West (CDMA) at 99.99% and the lowest in UP East (GSM) at 95.1%. It is also a well established fact that tariffs are extremely competitive and so moving to a dramatically lower bill is unlikely.
Some consumers who are frequent callers, an equivalent of closed user group—or family members who are currently on different networks could now move to single network to take advantage of attractive tariff packages, including free calls within the same network, etc.But before you make any switch check whether your operator is providing a similar option.
The cost of porting a number to a new operator is Rs 19, with the maximum porting time capped at 7 working days by telecom regulator Trai except in Jammu and Kashmir, Assam and North East service areas, where it will be 15 working days. However , consumers will have to remain with the new operator for three months before moving on.
MNP has been delayed by 3 years, leaving many consumers anxious . Several subscribers, who feel disappointed with billing, customer care, and overall service delivery, have been waiting for this moment . But the real question is whether you should take the plunge and switch loyalties or not. Will the switch really be worth your trouble?
The real reason for change would be to access better quality of service or improved customer care and of course, the proposition of a better tariff package. This, however,will occur only if operators believe that the churn out of their subscriber base will be so high that they need to improve their service or customer care, etc. However , surveys have revealed that the net effect of number portability is practically negligible . This means most large operators gain and lose roughly the same number of subscribers, taking away any incentive to dramatically change quality of service or customer care or pricing owing to the threat of losing subscribers or the option of gaining subscribers.
For the consumer, this could mean you might switch your operator, but based more on a perception of improvement rather than a real difference. Trai’s September 2009 data suggests that at a pan-India level, the call set up success rate was upwards of 97.26%—the lowest being in UP (East) and the highest at 99.99% in Mumbai . Similarly the call drop rate according to Trai is less than 3% across the country with the highest at 1.9% in Rajasthan and the lowest at 0.42% in Orissa. In fact, the difference between GSM and CDMA operators is also negligible .
Further, all operators across the country score upwards of 90% with regards to the parameter called connection with good quality voice with the highest in UP West (CDMA) at 99.99% and the lowest in UP East (GSM) at 95.1%. It is also a well established fact that tariffs are extremely competitive and so moving to a dramatically lower bill is unlikely.
Some consumers who are frequent callers, an equivalent of closed user group—or family members who are currently on different networks could now move to single network to take advantage of attractive tariff packages, including free calls within the same network, etc.But before you make any switch check whether your operator is providing a similar option.
RIL Q3 net profit at Rs 5136 cr, up 28% YOY
India's largest company by market capitalisation, Reliance Industries (RIL), maintained its profit-growth momentum by reporting a 28% rise in net profit at Rs 5136 cr vs Rs 4008 cr for Q3 FY-2011. Total sales for Q3 was Rs 62399 cr.
The Mukesh Ambani-led company had a net profit of Rs 4,008 crore in the same period last year. The net turnover of the company increased to Rs 59,789 crore from Rs 56,856 crore in the corresponding quarter of the year-ago period, RIL said in a filing to the Bombay Stock Exchange.
Mukesh Ambani, the world's fourth-richest man with a fortune of $29 billion according to Forbes magazine, ended a long and public fight with his billionaire brother Anil last year and made a dramatic return to the telecom business with a $1 billion acquisition of nationwide broadband wireless spectrum.
The company, which has traditionally focused on energy, has recently been investing in overseas shale gas assets and widening its businesses beyond petrochemicals, refining, oil and gas exploration, and retail.
n spite of expanding net profit by 30% YoY in the first half of FY11, the RIL scrip has grossly underperformed on the bourses. While the BSE Sensex has gained around 7% since April 2010 so far, RIL lost a little over 10%. The scrip has remained range-bound between 950 and 1,100 for the past 20 months, even as Sensex moved from around 12,000 to 18,800.
Shares in Reliance, valued at nearly $71 billion, fell 2.9 percent in 2010, underperforming a 17.4 percent gain in the main BSE index. RIL shares today ended the day with a gain of 1.73 per cent at Rs 986.50 apiece on the Bombay Stock Exchang
The Mukesh Ambani-led company had a net profit of Rs 4,008 crore in the same period last year. The net turnover of the company increased to Rs 59,789 crore from Rs 56,856 crore in the corresponding quarter of the year-ago period, RIL said in a filing to the Bombay Stock Exchange.
Mukesh Ambani, the world's fourth-richest man with a fortune of $29 billion according to Forbes magazine, ended a long and public fight with his billionaire brother Anil last year and made a dramatic return to the telecom business with a $1 billion acquisition of nationwide broadband wireless spectrum.
The company, which has traditionally focused on energy, has recently been investing in overseas shale gas assets and widening its businesses beyond petrochemicals, refining, oil and gas exploration, and retail.
n spite of expanding net profit by 30% YoY in the first half of FY11, the RIL scrip has grossly underperformed on the bourses. While the BSE Sensex has gained around 7% since April 2010 so far, RIL lost a little over 10%. The scrip has remained range-bound between 950 and 1,100 for the past 20 months, even as Sensex moved from around 12,000 to 18,800.
Shares in Reliance, valued at nearly $71 billion, fell 2.9 percent in 2010, underperforming a 17.4 percent gain in the main BSE index. RIL shares today ended the day with a gain of 1.73 per cent at Rs 986.50 apiece on the Bombay Stock Exchang
Wipro results: Q3 net up 10%, IT chiefs quit
India's No. 3 software services exporter Wipro replaced the chiefs of its key outsourcing business and reported third-quarter profit growth that lagged its main rivals, sending its shares down 4% on Friday.
Wipro, which posted a 10 percent rise in third quarter net profit on Friday, had been struggling to keep up with its bigger competitors, Tata Consultancy and Infosys. Wipro shares were down 3.5 percent at Rs 460.90 in morning trade, after falling as much as 4.2 percent -- their biggest fall in more than two months.
Tata Consultancy dipped 0.4 percent and Infosys fell nearly 1 percent in a main Mumbai market down 0.2 percent.
Wipro is led by Chairman Azim Premji , the world's 24th richest billionaire according to Forbes and termed "India's Bill Gates" by the magazine.
Premji took over his father's ailing vegetable oil business in the mid-1960s leaving his degree in engineering at Stanford unfinished. He diversified into making hydraulic cylinders in the 1970s and struck out into information technology in 1980
Wipro, which posted a 10 percent rise in third quarter net profit on Friday, had been struggling to keep up with its bigger competitors, Tata Consultancy and Infosys. Wipro shares were down 3.5 percent at Rs 460.90 in morning trade, after falling as much as 4.2 percent -- their biggest fall in more than two months.
Tata Consultancy dipped 0.4 percent and Infosys fell nearly 1 percent in a main Mumbai market down 0.2 percent.
Wipro is led by Chairman Azim Premji , the world's 24th richest billionaire according to Forbes and termed "India's Bill Gates" by the magazine.
Premji took over his father's ailing vegetable oil business in the mid-1960s leaving his degree in engineering at Stanford unfinished. He diversified into making hydraulic cylinders in the 1970s and struck out into information technology in 1980
Saturday, January 15, 2011
Tata Coffee Signs MOU with Starbucks Coffee Company of USA
Starbucks Coffee Company and Tata Coffee yesterday signed a non-binding memorandum of understanding (MoU) to collaborate in sourcing and roasting of coffee beans sourced from Tata's Coorg plantation and developing the latter's retail outlets and hotels in India.
Starbucks is the world's biggest coffee chain managing over 16,000 stores and operates in more than 50 countries.
As a result of the announcement, Tata Coffee today rocketed over 17 per cent on Bombay Stock Exchange.
Shares of Tata Coffee opened the day on a robust note and zoomed by 17.57 per cent to touch a four-month peak of Rs 544.50 a share on BSE.
Investors also flocked Tata Coffee's counter on the National Stock where the stock surged by 7.43 per cent to Rs 499.10 a share
Starbucks is the world's biggest coffee chain managing over 16,000 stores and operates in more than 50 countries.
As a result of the announcement, Tata Coffee today rocketed over 17 per cent on Bombay Stock Exchange.
Shares of Tata Coffee opened the day on a robust note and zoomed by 17.57 per cent to touch a four-month peak of Rs 544.50 a share on BSE.
Investors also flocked Tata Coffee's counter on the National Stock where the stock surged by 7.43 per cent to Rs 499.10 a share
Tata Steel fixes FPO price band at Rs 594-610 per share
Tata Steel on Saturday fixed the price band of Rs 594-610 a share for its follow -on public offer of 5.7 crore shares, which will hit the capital markets between January 19 to 21.
At the higher end of the price band at Rs 610 per share, the company will garner Rs 3,477 crore from the FPO, while at the lower end of price band at Rs 594 a share, it will raise Rs 3,385 crore.
Price of the FPO, in which company is off loading its 5.94 per cent stake, is offered at a discount of 5 to 8 per cent from stock price of the date of announcement, which stood at Rs 647.6 a share.
However, the company's scrips had fallen by over 4 per cent since then and was traded at Rs 621.7 apiece on the Bombay Stock Exchange on Friday, down 2.47 per cent from the previous close.
As on September 30, 2010, promoters hold 32.48 per cent stake in company, while Insurance companies and foreign institutional investors hold 22.4 per cent and 15.87 per cent stake, respectively.
The company has fixed the bid lot of a minimum of 10 equity shares and in multiples of 10 shares thereafter for the issue which comprises a net issue to the public of 5.55 crore shares and a reservation of 15 lakh shares for subscription by eligible employees.
At the higher end of the price band at Rs 610 per share, the company will garner Rs 3,477 crore from the FPO, while at the lower end of price band at Rs 594 a share, it will raise Rs 3,385 crore.
Price of the FPO, in which company is off loading its 5.94 per cent stake, is offered at a discount of 5 to 8 per cent from stock price of the date of announcement, which stood at Rs 647.6 a share.
However, the company's scrips had fallen by over 4 per cent since then and was traded at Rs 621.7 apiece on the Bombay Stock Exchange on Friday, down 2.47 per cent from the previous close.
As on September 30, 2010, promoters hold 32.48 per cent stake in company, while Insurance companies and foreign institutional investors hold 22.4 per cent and 15.87 per cent stake, respectively.
The company has fixed the bid lot of a minimum of 10 equity shares and in multiples of 10 shares thereafter for the issue which comprises a net issue to the public of 5.55 crore shares and a reservation of 15 lakh shares for subscription by eligible employees.
Friday, January 14, 2011
Sensex breaks crucial 19k level on interest rate concerns
Benchmarks ended below crucial support levels Friday raising concerns of further decline in coming sessions. Indian markets have been under pressure on worries of inflation, interest rate hike, liquidity crunch and sell-off by foreign institutional investors
Indices opened on a weak note in line with other Asian peers and witnessed a bounce back intraday after benchmarks breached support levels. However, the pull-back was short-lived as rise in inflation dampened sentiments
National Stock Exchange’s Nifty ended at 5654.55, down 97.35 points or 1.69 per cent. The broader index touched a low of 5639.65 and a high of 5833.65 intraday.
Bombay Stock Exchange’s Sensex closed at 18860.44, down 322.38 points or 1.68 per cent. The 30-share index touched a low of 18811.96 and high of 19447.82 in today’s trad
Indices opened on a weak note in line with other Asian peers and witnessed a bounce back intraday after benchmarks breached support levels. However, the pull-back was short-lived as rise in inflation dampened sentiments
National Stock Exchange’s Nifty ended at 5654.55, down 97.35 points or 1.69 per cent. The broader index touched a low of 5639.65 and a high of 5833.65 intraday.
Bombay Stock Exchange’s Sensex closed at 18860.44, down 322.38 points or 1.68 per cent. The 30-share index touched a low of 18811.96 and high of 19447.82 in today’s trad
Infosys results up over 14% at Rs 1,780 cr for Q3
IT bellwether Infosys Technologies on Thursday reported 14.17 per cent growth in consolidated net profit at Rs 1,780 crore for the third quarter ended December 31, 2010.
The company had a net profit of Rs 1,559 crore in the December quarter of the previous fiscal (2009-10), Infosys said in a filing to the Bombay Stock Exchange.
The consolidated revenue of the country's second largest software exporter rose to Rs 7,106 crore against Rs 5,741 crore over the year-ago period
For the Q4 ending March 31, the company expects the revenues to be in the range of Rs 7157- Rs 7,230 crore, while it anticipates the revenue for the full year ending March 31, 2011, in the range of Rs 27,408- Rs 27,481 crore
On the standalone basis, the company has reported 11.55 per cent growth in its net profit at Rs 1,641 in Q3 2010-11, over the same period in the previous fiscal.
Income rose to Rs 6,534 crore in the October-December quarter, against Rs 5,335 crore in the same period last fiscal
The company had a net profit of Rs 1,559 crore in the December quarter of the previous fiscal (2009-10), Infosys said in a filing to the Bombay Stock Exchange.
The consolidated revenue of the country's second largest software exporter rose to Rs 7,106 crore against Rs 5,741 crore over the year-ago period
For the Q4 ending March 31, the company expects the revenues to be in the range of Rs 7157- Rs 7,230 crore, while it anticipates the revenue for the full year ending March 31, 2011, in the range of Rs 27,408- Rs 27,481 crore
On the standalone basis, the company has reported 11.55 per cent growth in its net profit at Rs 1,641 in Q3 2010-11, over the same period in the previous fiscal.
Income rose to Rs 6,534 crore in the October-December quarter, against Rs 5,335 crore in the same period last fiscal
iGate acquire Patni in a USD 1 Billion plus deal
India's club of $1 billion-plus information technology and IT-enabled services companies got a new member, with iGate's $1.2 billion acquisition of Patni Computer Systems . iGate, less than half Patni's size, has offered to pay 503.5 per share to buy a 63% stake in Patni, backed by equity from private equity and loans from foreign lenders.
The acquisition will end ownership woes in Patni and help the company build its pipeline in the banking and financial services vertical, in which iGate earns a large chunk of its revenues.
Consolidation in the mid-size IT space began in 2008, when MindTree acquired Aztecsoft to boost its outsourced product development. In 2009, the IT sector reportedly saw close to 92 M&A deals largely in the small and mid-sized IT space. The number rose to 115 in 2010.
The trend will intensify in the post recession period as financial mergers and acquisitions in the West have resulted in substantial additional business in the financial software vertical. The demand from retailers has also been strong, though demand from manufacturing is still weak
The acquisition will end ownership woes in Patni and help the company build its pipeline in the banking and financial services vertical, in which iGate earns a large chunk of its revenues.
Consolidation in the mid-size IT space began in 2008, when MindTree acquired Aztecsoft to boost its outsourced product development. In 2009, the IT sector reportedly saw close to 92 M&A deals largely in the small and mid-sized IT space. The number rose to 115 in 2010.
The trend will intensify in the post recession period as financial mergers and acquisitions in the West have resulted in substantial additional business in the financial software vertical. The demand from retailers has also been strong, though demand from manufacturing is still weak
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