Spanco Telesystems rings on acquisition

Spanco Telesystems rings on acquisition

Spanco Telesystems & Solutions gained 1.65% to Rs 225 at 15:20 IST on BSE, after the company said it has entered into an agreement to acquire Great IT through its wholly owned subsidiary Spanco (S) Pte.

The company made this announcement before trading hours today, 5 February 2008.

Meanwhile, BSE Sensex was up 18.02 points or 0.10% to 18,678.34.

On BSE, 23,493 shares were traded in the counter. The scrip had an average daily volume of 48,665 shares in the past one quarter.

The stock hit a high of Rs 229.95 and a low of Rs 220.05 so far during the day. The stock had a 52-week high of Rs 300 on 28 May 2007 and a 52-week low of Rs 162 on 22 January 2008.

The small-cap scrip had underperformed the market over the past one month till 4 February 2008, declining 12.28% compared to the Sensex’s decline of 9.80%. It had outperformed the market in the past one quarter, gaining 5.05% compared to Sensex’s decline of 3.82%.

The company’s current equity is Rs 20.65 crore. Face value per share is Rs 10.

The current price of Rs 225 discounts its Q3 December 2007 annualized EPS of Rs 27.91 a PE multiple of 8.06.

On 7 January 2008, Spanco Telesystems secured a contract worth Rs 13.75 crore to connect jails and courts in Haryana through statewide area network for various E governance initiatives.

On 24 December 2007, the company secured an order worth Rs 40 crore contract from the Andhra Pradesh state government for providing Internet services for five years.

Spanco Telesystems & Solutions’ net profit rose 32.08% to Rs 14.41 on a 38.44% growth in net sales to Rs 188.3 crore in Q3 December 2007 over Q2 September 2007.

Spanco Telesystems has two main segments, viz. telecommunication and call centre-international.