Micro Cap IT Stock Acquires 100% Stake In UAE-Based Company Grenew DMCC

Leading IT solutions provider in India, QuickTouch Technologies specialises in cloud computing, software, web and app development, as well as data analytics and management. Following the company's announcement on Thursday that it has authorised the acquisition of a 100% shareholding in Grenew DMCC, a UAE-based company, the shares of the company began higher on the NSE on Friday at Rs 125 each and surged to an intraday high of Rs 127.70.

"This acquisition aligns with our long-term strategic objectives to diversify and expand our business operations into new international markets and sectors. In acquiring Grenew DMCC, our aim is clear, to extend our reach, both far and near. Grenew DMCC stands tall, handling used electrical and electronic appliances, with a network spanning the US, UK, African, Hong Kong, and the Middle East Countries. It connects markets far and wide, a global trading feast. Grenew DMCC's network provides Quicktouch an avenue, where opportunities cast to capture markets and lead the way," said QuickTouch Technologies in a NSE filing.

The acquisition was made at a cost of 1000 shares at 310.351 AED per share each and the acquisition will be completed on or before December 2025. Quicktouch Technologies gains strategic advantages from the acquisition of Grenew DMCC, a renowned company that specialises in the trading of used electrical and electronic appliances. Quicktouch's long-term development and profitability are ensured by this deal, which increases its market reach, diversifies sources of revenue, and improves its capacity for sustainable practices. The acquisition also benefits from an excellent location, cutting-edge infrastructure, and an established market presence.

"The acquisition aligns with broader aims, integrating capabilities, in Quicktouch's name. Refurbishing, recycling, and more in store, expanding our services, as we explore. Owning Grenew DMCC, a consolidated view, strengthens Quicktouch's stance, in markets. Leveraging expertise, with competitive might, to steer our global presence," the company further informed the market place.

The IT company also informed to NSE that "The Board of Directors of the Company in their meeting held today i.e. Thursday, June 20, 2024, inter-alia, considered and approved the allotment of equity shares on conversion of 2,12,112 warrants into 2,12,112 equity shares at an issue price of Rs. 196.17/- each (including a premium of Rs. 186.17/- each), to "Non Promoters/Public Category", on preferential basis, upon receipt of balance amount aggregating to Rs. 3,12,07,614.336/- (Rupees Three Crores Twelve Lakhs Seven Thousand Six Hundred Fourteen and Paise Thirty-Four Only) at the rate of Rs. 147.128 (Rupees One Hundred Forty-Seven and Twelve Paise only) per warrant (being 75% of the issue price per warrant) from the allottees."

At a preferential issue price of Rs. 196.17/-per warrant, these warrants were issued to "Promoters and Promoter Group" and "Non-Promoters/Public Category," with 25% of the issue price. Warrant holders are entitled to have their warrants converted into an equal number of equity shares of the company by paying the remaining 75%, or Rs. 147.128/-, within 18 months of the warrants' initial allotment date. The issued and paid-up capital of the company has grown to Rs 6,23,00,000 as a result of the warrant conversion and equity share allocation. This comprises 62,30,000 equity shares, each valued at Re. 10.