Sunday, 7 December 2014

Infosys slipped over 3% as promoter sell stake; top Sensex loser - Economic Times

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NEW DELHI: Infosys Ltd slipped as much as 3.5 per cent in trade on Monday, after media reports that four of its founders are seeking to raise about $1.1 billion by selling stakes in the IT outsourcing company.

At 09:34 a.m.; Infosys was trading 3 per cent lower at Rs 2007. It hit a low of Rs 1996.65 and a high of Rs 2017 in trade today.


The founders are offering 32.6 million shares in Infosys at a fixed price of 1,988 Indian rupees ($32) each, a 4 per cent discount to Friday's close, Reuters said in a report quoting IFR.


Deutsche Bank is the sole book runner and the books were covered just after the launch, IFR, a Thomson Reuters publication said.


According to analysts, investors with a long term time horizon can still look at buying Infosys at lower levels. Last week in an analysts' meet Dr Sikka reiterated that Infosys continues to be on track to return to industry levels of growth by June 2016.


Dr Sikka reiterated his vision of Infosys' revival, using his 'New+Renew' theme, in the analyst meet held on Thursday last week. Infosys' new management's maiden analyst day was marked by Dr Sikka's reiteration of his 'New+Renew' theme, CLSA said in a report.


The Asia-pacific broker maintains 'buy' on Infosys with a target price of Rs 2500, which translates into an upside of 18.9 per cent in the next 12 months.


We were impressed by the fresh vision from a round of new faces heading key verticals and sources of differentiation around analytics and digital, said the CLSA report.


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