Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Infosys outlines European plans
Mon, 19 Apr 01:30 pm

Though the markets made good part of their losses during the previous two hours of trade, they continued to languish deep in red. Amidst broad based selling activity, the stocks from metal, realty, energy, FMCG and power sectors are the biggest losers.

The BSE-Sensex and the NSE-Nifty are trading lower, down by around 180 points and 60 points respectively. The BSE-Midcap and BSE-Smallcap are also trading lower, down by around 1.2% and 1.6% respectively. The rupee is trading at 44.59 to the dollar.

According to a leading business daily, India's second largest motorcycle manufacturer, Bajaj Auto has increased its stake from 31.9% to 35.7% in the European power bike maker, KTM. The Indian automobile company has invested € 20 m (or Rs 1.2 bn) in order to raise its shareholding in Austria based KTM Power Sports AG which is the second largest motorcycle maker and world's largest Off-Road Bike maker. This increase in shareholding was a part of a loan conversion and rights issue programme.

It may be noted that in 2007, Bajaj Auto acquired 14.9% stake in KTM for around Rs 3 bn. It has been slowly increasing its ownership in the company. By the end of 2008, Bajaj Auto owned 25% stake in KTM. The two partners signed an agreement to jointly develop 125 cc bikes which are manufactured in Bajaj Auto's Pune facility for exports to European markets under KTM brand. It is believed that the joint venture is panning out well and anticipates launching its products in the European market within 1 year. Bajaj will also distribute KTM's products in India and other markets like Sri Lanka, Bangladesh, Indonesia and Africa.

As per a leading business daily, India's second largest IT exporter, Infosys which has been a relative laggard in terms of acquisitions in the recent past, is eyeing strategic acquisitions in Europe. The company while highlighting its 'two-pronged strategy' for the European markets has indicated that it is looking at companies with revenues in the range of US$ 100 m to US$ 300 m in UK, France and Germany. In UK, the company plans to acquire small firms catering to specific industry verticals or ones owning some significant Intellectual Property (IP) or platform. In Germany and France Infosys is targeting companies having capability for enterprise applications and consulting. The company is witnessing significant traction in Switzerland and Nordic countries where it primarily caters to medium and large enterprises.

It may be noted that at end of March, 2010 Infosys had a huge cash reserve of US$ 3.5 bn. We believe the cash rich company has a lot of opportunity and capability to scale up its operations in Europe. Lack of technology talent pool in Europe is compelling more and more organisations to embrace IT outsourcing and off-shoring to destinations like India.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Infosys outlines European plans". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 20, 2018 (Close)