DBT Bureau
Bengaluru, 10 June
Mid-tier IT services firm Mphasis witnessed a block deal representing a 15.6% stake on the exchanges on Monday. Reportedly, the block deal was executed at an average price of Rs 2,392 per share, translating into a value of Rs 7,066 crore.
Shares of Mphasis also reacted negatively to the block deal and at 09.19 am, were trading over 2 percent lower at Rs 2,421.45 on the NSE.
While Data Biz Times could not immediately identify the parties involved in this transaction, The Economic Times had reported that private equity firm Blackstone would pare up to 15% stake in the IT company.
The latest shareholding data shared by Mphasis before the fourth quarter performance showed that Blackstone, through its affiliate BCP Topco, owned a 55.45% stake in the IT company, making it the largest shareholder of the company. Post this transaction, Blackstone’s stake will come down to around 40%, and will continue to be the largest shareholder in the company.
The stock price of Mphasis reacted to the block deal as its share price fell 4.8% to trade around Rs 2,362 on NSE at 10.11 AM.
For the quarter ended March 2024, Mphasis recorded a marginal decline of around 3% in its consolidated net profit to Rs 393.2 crore, as compared to Rs 405.3 crore reported a year ago. The mid-tier IT services firm’s revenue increased to Rs 3,142 crore, up from Rs 3,361.2 crore a year ago. In the fourth quarter, the company also secured new contracts worth $177 million.
The US-based PE fund, Blackstone initially purchased a stake in Mphasis in 2016 from HP Enterprise at Rs 430 per share. HP had a 60.5% stake in Mphasis when it signed a definitive agreement with Blackstone.
The Blackstone’s block deal in Mphasis became the second-largest block deal this year after British American Tobacco garnered nearly Rs 17,000 crore by selling a 3.5% stake in ITC.
