Shares of R Systems International zoomed over 10 percent on October 4, the highest in 14 weeks after 8 percent equity, equivalent to 1 crore shares of the company changed hands in the block deal window.
Regardless, the block deal tipped off a spike in trading volumes on the counter. As much as one crore shares of the company changed hands so far, a meteoric rise from the one-month daily traded average of two lakh shares.
At 11.23 am, shares of R Systems International were trading at Rs 503.60 on the NSE, though firm in the green but off its day's high of Rs 519.
Last month, the digital product engineering company, R Systems approved the amalgamation of Velotio Technologies and Scaleworx Technologies with itself.
R Systems International (RSI) holds a niche position in the outsourced product engineering (OPD) and digital transformation services market. According to brokerage firm Equirus Securities, the company's efforts are starting to pay off, with consistent growth in deal wins exceeding $1-3 million, supported by a strong pipeline generated through proactive proposals.
Following the acquisition of a majority equity stake in R Systems by the Blackstone Group, the company has undergone a remarkable transformation. This includes enhancing leadership talent, partnering with major technology vendors, and revamping its go-to-market (GTM) model to establish a strong framework for client engagement and larger deal acquisitions. Equirus Securities has assigned an "add" rating to R Systems, with a target price of Rs 570.
US-based investment management firm Blackstone is the promoter of R Systems, owning close to 52 percent stake in the company through its affiliate BCP Asia II Topco II Pte. The investment firm acquired this majority stake in R Systems for Rs 350 crore back in May last year.
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