Stock swings wildly on reports of founder selling entire holding; firm denies reports

Shares of the country’s fourth largest information technology services company, HCL Technologies, closed at ₹1,538.25, up 2.92 per cent on the BSE on Friday on reports that its founder, Shiv Nadar, plans to sell his entire stake and is looking for potential buyers.

However, the company strongly denied the reports stating, “HCL Corporation denies any plans to exit HCL Technologies.”

HCL Corporation is the holding company of HCL Tech and HCL Infosystems — providing engineering, custom and package applications, business process outsourcing, IT infrastructure services and systems integration, among others.

With its innovative products and continuous business from re-bid markets, HCL Tech has been reporting profits consistently, according to analysts.

It has also recently announced programmes such as global Twitter recruitment campaign called #Coolestinterviewever. Started on February 10, the company is conducting a series of interviews exclusively over Twitter.

Through such programmes, it is offering the winning candidate an opportunity to work on a year-long strategic project with the company’s top management.

HCL Technologies reported a 58.4 per cent increase in net profit to ₹1,496 crore for the second quarter ended December 31, 2013, compared with ₹944 crore in the corresponding quarter last year.

The company’s revenues grew 30.4 per cent to ₹6,278 crore. Net profit had grown 5.7 per cent compared to the previous quarter sequentially. The company follows July to June as its financial year.

(This article was published on February 21, 2014)
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