Aptech Training took the fast train up barely as trading commenced on Thursday on reports that talks are being conducted with SSI for sale of the company.
By 9:57 IST, the stock of the Atul Nishar group IT education company jetted up 6.24% to Rs 40 on the reports. Volumes touched 16,545 shares on BSE by then.
Reports have emerged that SSI is planning to buy out the company and discussions over the sale are believed to be at an advanced stage. The announcement of the transfer is expected shortly, according to the reports.
SSI, too, was boosted by the news, jumping 5.87% to Rs 100.10 on volumes of 25,789 shares on BSE.
The acquisition stories carry weight as there appears to be a good amount of synergy between the two IT education companies. SSI has a strong foothold in courses related to emerging technologies such as networking, e-business, client-server technologies and bioinformatics, while Aptech Training enjoys a significant share in the market for long-term IT courses.
SSI has about 750 education centres, while Aptech runs a total of 2,490 education centres including about 260 overseas centres.
If the acqusition materialises, the combined entity could command a market share equal to that of sector leader NIIT (52%).
The recently listed Aptech Training commenced trading on the bourses on 24 September 2002, following the de-merger of Aptech into two companies - Hexaware Technologies and Aptech Training. Aptech Training debuted at Rs 45 per share on BSE.
On 29 December 2002, the Mumbai High Court granted its nod to the erstwhile Aptech's restructuring scheme involving the separation of the training and education business (Aptech Training) from the software business (Hexaware Technologies).
Simultaneously, Hexaware Technologies, a SEI CMM Level 5 software company (unlisted in India) with a focus on the US and European markets, was merged with Aptech (the software entity).
The shareholders of Aptech had earlier approved the composite restructuring scheme at an extraordinary general meeting held on 27 September 2001. The restructuring came into effect from 1 April 2001.
The paid-up capital got divided between the two companies Aptech (software entity) and Aptech Training in a ratio of 40:60. For every 10 shares in the erstwhile Aptech, each shareholder got 4 equity shares of Hexaware Technologies and 6 new equity shares in ATL. The equity share capital of ATL now stands at Rs 18.14 crore.