Blackstone-owned small-cap stock surges 17% on acquisition, fundraising update. Do you own?

Blackstone-owned small-cap stock R Systems International surged 17% in intraday deals on Friday, August 22, following the announcement of the acquisition of Novigo Solutions and the board's approval of ₹275 crore fundraising.

R Systems' share price rallied 17.24% to the day's high of ₹496.95 in intra-day deals today. As of 10.40 am, the small-cap below ₹500 was trading 13.27% higher at ₹480.10.

R Systems International Limited, post-market hours on Thursday, announced that it has entered into a definitive agreement to acquire Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services.

R Systems will acquire Novigo Solutions for an upfront cash consideration of ₹400 crore, along with an additional stock consideration linked to future EBITDA achievement, the company informed via exchange filing. The upfront cash consideration will be funded by debt and internal accruals.

The acquisition will be EPS accretive for R Systems since year one, it added.

Novigo has been growing strongly and delivered 44% revenue CAGR over the last three years, with 25% EBITDA margin and healthy free cash flow.

This acquisition significantly strengthens R Systems’ digital product engineering capabilities in key domains such as FinTech and Hi-Tech. It further enhances our expertise in the Agentic AI space, uniquely positioning the combined entity to deliver AI-led intelligent automation at scale, the company said.

Additionally, the acquisition will expand its presence in the fast-growing Middle East market while broadening the delivery footprint in Mangalore, Kochi, and Bengaluru—recognised hubs for world-class product engineering talent.

Meanwhile, in another update, the company said its board approved the issuance of rated, listed, unsecured, redeemable, nonconvertible debentures of face value of ₹100,000 for an aggregate principal amount of up to ₹2,750,000,000, on a private placement basis, in one or more series or tranches to certain eligible investors.

These debentures are proposed to be listed on the BSE.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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