Future Enterprises spikes on Livquik acquisition

The company has entered a deal to acquire majority stakes in the payment services company Livquik Technology. Reacting to the news, the stock of Future Enterprises Limited was buzzing during the morning session on Wednesday.

Livquik Technology (India) Private Limited is a Mumbai-based company that provides bill payment services through mobile wallet application for merchants and consumers. The company provides digital prepaid payment instrument, provisions payment gateway services and develops customised software. For FY17-18, the company registered a turnover of Rs. 1.69 crore. The deal is subject to regulatory approval and is expected to close in the next 24 months.

This acquisition will be a value-add for Future Enterprises. Cost of the acquisition will be Rs. 20 crore and an additional investment of Rs. 5 crore, if needed. Post the deal, Future Enterprises will hold 54.98 per cent stake in Livquik and it will become a subsidiary of the company.

Meanwhile, at 11:14 hours, the stock of Future Enterprises was quoting Rs. 35.20 per share, up by 6.67 per cent on Wednesday, when the benchmark index BSE Sensex was at 36,255.73, down by 270.41 points or 0.74 per cent.