HOV Services up almost 15%

HOV Services is currently up almost 15% at Rs.37.20, with an intra day high at Rs.38.90. Its 52-week high is at Rs.43.

The stock has zoomed up today on unconfirmed news that the company  has put its BPO unit, SourceHOV on the sale block. And the company is asking for a valuation of $1.2 billion. HOV Services has a 27.2% stake in the company and if this sale does happen, HOV will earn around US$300 million.

SourceHOV is jointly owned by HOV and Citigroup Venture Capital International, which has a 65% stake in the company.  If this does happen, it could be the biggest M&A deal in the BPO sector. Currently this honour  us held by Genpact, which sold its 30% stake to Bain Capital for $1 billion.