Infosys share gains on hope of acquisition

Stocks

oi-Sunil

By Sunil Fernandes

Updated: Thursday, September 6, 2012, 13:40 [IST]

Shares of Infosys Technologies gained in trade today, on hopes that the company would finalise a acquisition shortly. The stock was up almost 3% and was trading at Rs 2405 on the Bombay Stock Exchange.

Infosys Technologies is sitting on cash and liquid assets of more than Rs 20,000 crores and analysts have all along been hoping that the company puts the cash to use. However, over the years the company has been unable to identify a large scale buy, that could add value to its business.

The last few quarters have been dismal in terms of financial performance for the company and it desperately needs to make a acquisition to chalk out an ambitious growth plan. A difficult business environment where spends have been less from clients has affected the company adversely.

In fact, the share of the company has been languishing at a time when shares in Tata Consultancy has been hitting 52-weeks highs, on better performance.

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