NIIT shares surge on ESOP allotment, strategic shift

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Shares of talent development company NIIT Ltd surged for the third straight session on September 13, 2023, after the company announced the allotment of 1,01,666 equity shares of Rs 2 each under its Employee Stock Ownership Plan (ESOP).

The stock closed at Rs 140.58, up 20% from the previous close. The company’s shares had rallied nearly 19% in the previous session and 20% on September 11.

The sharp rise in the stock price was also supported by the company’s announcement of a strategic shift towards exploring new sectors to address evolving skill needs in the job market.

In an interview with CNBC-TV18, Rajendra Singh Pawar, the chairman and co-founder of NIIT Group, said, “We don’t see a very big uptake in new jobs in the near term. But we see the need for change in skills. We are looking for the horizon for new sectors that are emerging in this country right now.”

“I think India is poised for growth on a number of dimensions. So we are looking at newer sectors where we will be making offerings, and that’s the work in progress at this point in time. I think the most interesting part is the role of AI,” he added.

Shares of NIIT Ltd are down 55% this year till date.

Key takeaways:

  • NIIT shares surged for the third straight session on September 13, 2023.
  • The sharp rise in the stock price was supported by the company’s announcement of an ESOP allotment and a strategic shift towards exploring new sectors.
  • Shares of NIIT Ltd are down 55% this year till date.

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