HOV Services hits the roof on buzz of SourceHOV sale

HOV Services hit an upper circuit limit of 20% at Rs 38.90 at 14:10 IST on BSE on a media report that the company has put its BPO company SourceHOV for sale and is expecting a valuation of $1.2 billion.

Headlines - 28-10-2013 14:22

Meanwhile, the BSE Sensex was down 98.43 points, or 0.48%, to 20,585.09.

On BSE, 1.23 lakh shares were traded in the counter compared with average volume of 13,295 shares in the past one quarter.

The stock hit a low of Rs 36 earlier in the day. The stock hit a 52-week high of Rs 43 on 15 November 2012. The stock hit a record low of Rs 20 on 22 March 2013.

The stock had outperformed the market over the past one month till 25 October 2013, rising 18.21% compared with the Sensex's 4.17% rise. The scrip had also outperformed the market in past one quarter, rising 8.17% as against Sensex's 4.44% rise.

The small-cap company has an equity capital of Rs 12.49 crore. Face value per share is Rs 10.

According to the media report, SourceHOV, which is jointly owned by Citigroup Venture Capital International and HOV Services has been put on the block with a asking valuation of $1.2 billion.

SourceHOV is a global provider of transaction processing solutions, strategic consulting and data analytics services.

In March 2013, Citi Venture Capital International had invested in SourceHOV, buying out the interest ownership of affiliates of Apollo Global Management, LLC and certain minority holders' in SourceHOV.

HOV Services owns a 27.2% stake in SourceHOV while Citigroup Venture Capital International owns 65% with operational and financial control.

HOV Services' 27.2% stake in SourceHOV could be valued at about $300 million, report added.

HOV Services' net profit rose 28.2% to Rs 0.50 crore on 18.2% rise in net sales to Rs 3.24 crore in Q2 June 2013 over Q2 June 2012.

HOV Services, operates as a hybrid between investment and diversified services corporation. HOVS has grown over the last decade through series of key acquisitions in target industries leveraging the global footprint and now has presence in the US, Canada, India, China, Mexico and the Philippines.