Shares of L&T Technology Services Ltd slumped over 6% on Friday following the announcement that it has purchased the Smart World & Communications division (SWC) of its father or mother agency Larsen & Toubro (L&T) by way of hunch sale for a consideration of ₹800 crore.

According to firm’s change submitting, the enterprise switch transaction is predicted to be closed on or earlier than March 31, topic to satisfaction of situations precedent recognized underneath the settlement.

SWC was based in 2016 to cater to the calls for in good cities, deal with alternatives and supply good options within the areas of end-to-end communications, metropolis surveillance and clever site visitors administration system for the federal government in addition to enterprises.

It has an worker base of over 700 engineers from diversified know-how domains and has annual income of ₹1,098 crore.

Global brokerage, Morgan Stanley has maintained ‘underweight’ ranking on the inventory because it believes that the transition of SWC’s home enterprise to international clientele profile will weigh on sentiment.

At 10:25 IST, the shares of the corporate had been buying and selling at excessive quantity of 556.8K with value lack of 6.06.

The inventory has fallen 39.95% from 52-week excessive of 5,715.4 recorded on January 14, 2022. The firm’s weekly common supply quantity is 27.21%.

“After a gap down we are witnessing follow up selloff and huge volumes are as well seen, as of now traders should avoid catching falling knife as further weakness can be expected, 3300 is next support whereas 3,480 – 3,500 level is immediate resistance,” stated Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One.