Hi-Tech Gears announces international acquisition
A small-cap auto parts and equipment maker, Hi-Tech Gears announced creation of a wholly-owned subsidiary at Ontario, Canada, by the name of Neo-Tech Smart Solutions Inc today after market hours. The company bought it for cash consideration of 2.5 lakh Canadian dollars remitted against allotment of 2.5 lakh common shares of 1 Canadian dollar each. The acquired company was incorporated on May 11, 2018 and is engaged in general engineering, industrial components and automotive industry. Hence, the company has no turnover of its own.
With this acquisition, the acquired company will assist Hi-Tech Gears in strengthening internal capabilities related to automation and robotic. It will also carry out related research and logistic activities. Hi-Tech Gears would penetrate into different geographies and mark its footprint in Global Value Chain (GBV).
The stock of Hi-Tech Gears had given a multiple support breakdown at Rs 385 on October 9, 2018, which was not broken since November 2017. The stock gave a pullback of up to 38.2% retracement of the prior downward rally from Rs 505 to Rs 357, but retreated yet again to trade below Rs 357 at Rs 350 level with four consecutive daily downbeats in the recent sessions. The level of Rs 341 followed by Rs 330 will act as the next supports for the stock.