Quess Corp hits 52-week high on inorganic expansion

Quess Corp acquired facility management business of Manipal Integrated and 74 per cent stake in Inticore VJP. The share price of Quess Corp increased 10.47 per cent on the bourses and closed at Rs 679. The stock touched 52-week high at Rs 702.2 on intra-day basis.

Post-agreement, Quess Corp will provide facility management, catering and security services to all Manipal Education and Medical Group affiliated entities for a minimum period of five years. The company will initially invest Rs 220 crore by subscribing to compulsory convertible preference shares of Manipal Integrated Services (MIS). At the same time, the facility management and catering businesses of MIS will be merged into Quess for which Quess will issue 71.50 lakh shares to shareholders of MIS. 

Quess Corp’s facility management and catering businesses are expected to close FY17 with estimated revenue of Rs 426.5 crore. In addition, the company also acquired 74 per cent stake in Inticore VJP Advance Systems for an amount of Rs 3.5 crore. Quess approved issue of non-convertible debentures and other debt instruments of the company for an aggregate amount up to Rs 150 crore.