The shares of a small-cap company IT company that specializes in Product Engineering and Digital Transformation while providing concept-to-market, chip-to-cognition Research and Development services to global leaders went up 5 percent in intra-day trade. This surge in stock price is due to an acquisition of BORQS International worth Rs. 338 crores.
Share price movement
In Monday’s trading session, the shares of Sasken Technologies Limited went up 5 percent in intra-day trade to a high of Rs.1,830 per share, from its previous close of Rs.1,742.15 apiece. The share has retreated since and is trading at Rs.1,774 apiece which is up by 1.85 percent.
Rationale for Rise
The company has approved the acquisition of BORQS International Holding Corp which will include an indirect acquisition of certain wholly owned subsidiaries such as Borqs Technologies India Private Limited. This company belongs to computer integrated systems design.
Acquisition Objective
From this acquisition, The proposed acquisition will help Sasken support customers in developing, designing, and commercializing connected devices from concept to market. This includes IP development, ideation, software and product realization, and hardware supply chain management.
The indicative period of completion of the acquisition is on or before March 31st, 2025, and with all cash consideration. The value of the consideration is set to not exceed Rs. 338 crore. BORQS has a presence in Hong Kong, India, People’s Republic of China. Their revenue in FY23 stood at USD 32,046 (Jan-Dec accounting year).
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Management Commentary
Rajiv C Mody, The Managing Director and CEO of Sasken Tech said that this acquisition demonstrates their dedication to expanding technological capabilities and providing advanced solutions to their customers. By integrating Borq’s strengths, they will improve their portfolio, boost competitiveness, and drive growth in high-demand sectors like IoT and 5G, enabling nonlinear revenue streams.
Pat Chan, the Chairman and CEO of Borqs said since its inception, Borqs has prioritized talent and customized solutions to help clients stay ahead in technology. With a strategic partnership with Sasken, Borqs aims to leverage complementary strengths, improving innovation in AI and Blockchain technologies while pursuing emerging opportunities and trends.
Financial Performance
Sasken Technologies Limited reported its financial results and in Q2FY25 revenue from operations was up by 31 percent year-on-year basis reaching Rs. 135 crore, quarter-on-quarter basis it grew 9.75 percent. Additionally, Profit After Tax (PAT) was down 33 percent reaching Rs. 12 crores in Q2FY25 and quarterly it was down by 33 percent.
Company Profile
Sasken Technologies Limited is based in Bangalore, India, and specializes in product engineering and digital transformation. They offer comprehensive R&D solutions across various sectors, including automotive, semiconductors, and telecommunications.
Their business model focuses on delivering end-to-end services from concept to market while leveraging deep engineering expertise and technology innovation to serve global clients.
Written by – Santhosh S
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