INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of domestic IT firm HCL Technologies plunged 5 per cent in the early trade on Friday after the company said it is
acquiring select IBM software products for $1.8 billion.
Prateek Agarwal, CFO, HCL Tech, told ET Now, "The total value is $1775 million
Slightly less than half of it has to be paid at close, which we expect to be in the middle of calendar 2019
We have enough cash on the books for handling that kind of money but because some of it is in fixed deposits and long-term bonds, we might
have to borrow about $300 million
The balance we would be meeting out of internal accruals
The balance has to be met after the end of year one and that we would again generate from internal accruals."
The products which represent a
total addressable market of more than $50 billion include the products in areas like security, marketing and commerce.
The acquisition,
which is the largest in the history of HCL, is expected to close by mid-2019
Shares of the company traded 4.12 per cent down at Rs 970.30 on BSE around 9:40 am
The BSE Sensex was 0.47 per cent up at 35,479 at that time.
The software exporter had reported a 16.10 per cent year-on-year rise in profit
at Rs 2,540 crore for the quarter ended September 30.
