Shares of L&T Technology Services Ltd. fell the most since Dec. 23 after it agreed to buy Smart World & Communication business of its parent firm for Rs 800 crore.
The acquisition is a continuation of the company's '6 Big Bets' strategy in 5G, sustainability, digital products and artificial intelligence, the company said in its exchange filing.
Smart World & Communication was founded in 2016 to cater to the demands in smart cities, provide smart solutions, city surveillance and intelligent traffic management system for government as well as enterprises. It has an employee base of over 700 engineers from diversified technology domains and has crossed an annual revenue of Rs 1,000 Crore.
Shares of L&T Technology Services fell as much as 5.33% to close at Rs 3,448.75 apiece, on Friday, compared to a 0.55% gain in the benchmark Nifty 50. The total trade volume so far was 4.7 times its 30-day average.
Out of the 30 analysts tracking the company, 11 maintain a 'buy' rating, six suggest to 'hold' and 13 recommend to 'sell' the stock, according to Bloomberg data. The 12-month consensus price target implies an upside of 2.4%.
Source: Bloomberg, Exchange filing
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