Geometric hits new high and slumps

Geometric had hit a new 52-week high yesterday at Rs.206 and today, another new high at Rs.208.50. All this in anticipation that the company will announce the much awaited conformation on HCL Tech taking stake in the company.

Now there is unconfirmed news that HCL Tech has indeed taken a 37% stake in the company and the deal is valued at $200 million. HCL will buy this stake from Godrej Invetsments, Godrej Boyce and CEO Manu Parpia who has a 6.7% stake.

This stake buying will trigger off an open offer.

Since this news surfaced today mid-morning, the stock has plunged over 4% to Rs.193 and remains currently in the red on account of profit booking on the counter.

The company has called for a Board meet today evening at 5PM and it is expected that it will make this “official” announcement then.

The news on the street is that this deal could be made with s share-swap where one share of HCL Tech will be offered for every four shares of Geometric held.