Aricent Technologies (Holding) Limited Unlisted Shares | Latest Shares Price & Updates

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Company Overview

Aricent Technologies was founded in 1991 and runs its operations from its office in Gurugram, Haryana in India. Aricent Technologies designs and develops communication software for the communications industry. It offers middleware, consumer and enterprise applications, network management, service provisioning, and billing mediation. The company was a step-down subsidiary of Altran group, a listed entity formed and registered under the laws of France.

Capgemini SE acquired Altran Technologies SAS in 2020 which was the parent company of Aricent Technologies since 2018. The Capgemini India group holds 98.25% stake in Aricent Technologies holding Limited as of March 2021.

Overview

The acquisition of Aricent in 2018 by the Altran group and the subsequent acquisition of Altran group, including the Company, enabled Capgemini to strengthen its competencies and solutions in digital, based on intellectual property developed by Aricent, extended over time and benefiting from a strategic positioning on emerging technologies such as artificial intelligence, cognitive systems and the Internet of Things (IoT). 

The Company provides outsourced product development, product support services and licensable software frameworks and solutions. The Company’s service offerings provide a comprehensive product life-cycle services for communications networks, as well as connected devices, applications and mobile services. The Company offers competitive ER&D services, providing businesses with diversified and global expertise while meeting the highest quality standards. This solution offers great flexibility and is adaptable to the specific needs, level of maturity and geographical footprint of each client.

The principal line of business of Aricent Technologies (Holdings) Limited (‘the Company’) has been, and its focus and core capability continue to be, software engineering services and solutions for the communications industry. The Company provides a comprehensive portfolio of innovation capabilities that combine customer insights, strategy, design, software engineering and systems integration that enables its clients to develop differentiated user experiences while at the same time accelerating time-to-market and optimizing service operations.

Aricent technologies story

1991: Established as Hughes Software Systems (HSS) by KV Ramani in Nehru PlaceNew Delhi. It acquired Frog Design for approximately $25 million.

2004:  Flextronics bought HSS to form Flextronics Software Systems and merged with Future Software headquartered in Chennai.

2005:  Expanded development operations in KyivKherson and Vinnytsia in UkraineRandburgSouth Africa; and BeijingChina. Was delisted from India’s stock market in preparation for sale.

2006: Was acquired by Kohlberg Kravis Roberts and Sequoia Capital as part of a $900 million sale of software companies.[4] The transaction represented the largest private equity buy-out in Indian history.

2007: Acquired Datalinx; launched service provider offerings.

2008: The Family Office, a multi-family office company with headquarters in Bahrain also joined in funding Aricent.

2011: Rebranded to Aricent Group.

2011: Opened engineering and development center for testing and wireless technologies in Vietnam.

2013: Rebranded to Aricent.

2015: Acquired SmartPlay Technologies, a semiconductor service based firm for $180 million. As part of the deal, SmartPlay’s 1,200-plus staff will join Aricent’s staff.

2018: Altran acquires Aricent.

2020: Altran North America is renamed Altran Americas; Capgemini acquires Altran Group in April 2020.

Symbol:Aricent Technologies (Holdings) Limited
Face Value (₹):10
ISIN:INE272I01010
Demat Status:NSDL & CDSL
Lot Size:20 Shares

Products & Services

Aricent is a global design and engineering company with creative aspects for their customers in the digital era. They are always ready to help our clients lead into the future by solving their most complex and mission critical issues through customized solutions. Aricent always supports our clients and companies to do new things and scale with new intention. We always bring differentiated value and capability in focused industries to help transform products, brands and companies.

Aricent, an engineering and global designing company. It’s has orientation since 1991 and currently, offering a wide range of services to its customers across the World.

  1. Digital Design Services
  2. Software Product Development
  3. System and Silicon Development
  4. Testing Services
  5. support-services Product Services and Support
  6. Product Sustenance and Maintenance

Board of Directors

NameDesignationProfile
Mr. Ashwani LalWholetime Directorlinkedin
Mr. Krishna Chandra ReddyManaging Directorlinkedin
Mr. William Pierre Victor RozeAdditional DirectorNA Final 1
Ms. Shweta BhartiAdditional Directorlinkedin
Mr. Sanjeev Kumar HandaAdditional Directorlinkedin
Mr. Sujit SircarAdditional DirectorNA Final 1

Future Prospects

Continued growth in artificial intelligence, big data analytics, and cloud computing. Big data and AI are the keys for future growth. Also internet security and privacy are prioritized nowadays as the world is going digital, leading to increased security concerns like cyber-attacks.

Rising demand from businesses across all IT segments, with a pronounced acceleration in demand for cloud services, providing considerable monetization opportunity to the company in the future as it is already working in the segment.

The compound annual growth rate of the industry in the period 2021–26 is predicted to be 8.5%.  Growth will be driven by increased digitization alongside increased consumer expectations of digital services and infrastructure. Additionally, the continued push towards remote and distance working will further incite demand in the market through increased investment in digital services and infrastructure.

Key Business Highlights

Aricent is a leading global engineering services and software company, with specialized expertise in the communications, semiconductors and software market segments. 

Aricent Share price is trading at around Rs.605/share in the unlisted space.

Software and Services Sector
  1. In the last decade, the industry has grown many fold in revenue terms, and relative share to India’s GDP is around 8% in FY 2020-21.
  2. India is the topmost off-shoring destination for IT companies across the world. 
  3. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India.
  4. The country’s cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be its – Indian IT-ITeS industry that offers:
  • Cost-effectiveness
  • Great quality
  • High reliability
  • Speedy deliveries
  • Expected Growth

5. India’s IT-BPM industry (excluding e-commerce) is expected to grew by 2.3% to reach at USD 194 billion, including exports of 150 USD billion in FY 2020-21 (E)

Ratio

RatioFY22FY21
Operating Margin15%12%
Net Profit Margin9%8%
Return on Equity 9%8%
Debt-Equity0.020.04
Current Ratio5.084.14
Dividend Payout0%0%

 

Financial Highlights

Particulars2017-182018-192019-202020-212021-22
Total Income (₹ Crores) 2467.102464.402546.902610.002857.70
PAT (₹ Crores) 193.80213.40702.70196.00262.50
Diluted EPS 15.0016.0054.0015.0020.00
Book Value per Share (₹) 136.10129.84190.15198.93218.66
Equity (₹ Crores) 1,785.601,703.402,494.702,609.902,868.70

Financial Charts

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Historical Chart

Shareholding Pattern

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Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
Aricent Technologies (Holding) Ltd74139%13%9%0.0228.252.58218.66
Sonata Software Ltd83347%41%34%0.0315.316.99105.79
Zensar Technologies Ltd519810%20%15%0.0919.913.09118.89

Media Updates

 

Frequently Asked Questions 

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid. 

The procedure to buy the Aricent Technologies (Holdings) unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved. 

The Aricent Technologies (Holdings) shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Aricent Technologies (Holdings) Ltd unlisted shares, please visit the stock page on our website: www.delistedstocks.in 

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your Aricent Technologies (Holdings) unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange. 

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds will be released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell Aricent Technologies (Holdings) unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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