Key Details of the Block Deal
- Volume Traded: 2.95 crore shares, which is 15.6% of the company's total equity.
- Transaction Value: Over ₹7,066 crore.
- Average Price per Share: ₹2,392.
- Discount: The base price is at a 3% discount from the stock's closing level on Friday.
- Lock-In Period: The deal includes a 180-day lock-in period for the shares involved.
- Current Trading: At 9:30 am, Mphasis shares were trading 2.08% lower at ₹2,420.45 apiece on the NSE today.
Blackstone's Involvement
While the buyers and sellers in this transaction remain officially unknown, CNBC-TV18 reported, citing sources, that Blackstone is expected to sell a 10.6% stake in Mphasis through block deals at a base price of ₹2,350 per share.
BCP Topco, a private limited company incorporated in Singapore, is linked to the major private equity firm Blackstone. As of the end of March 2024, Blackstone held a 55.45% stake in the Bengaluru-based company. Following the transaction, Blackstone's stake will decrease to 40.4%, though it will continue to be the largest shareholder in Mphasis.
About Mphasis
Mphasis is a leading provider of information technology services, specializing in cloud and digital solutions. The company has deep domain expertise in the banking, financial services, and insurance sectors (BFSI). Despite the decline in share price, Mphasis remains a significant player in the IT services industry.
Market Reaction
The stock has declined 12% so far this year, reflecting some of the broader challenges and market sentiments faced by the IT sector. Investors will be closely watching how the reduced stake by Blackstone and the lock-in period impact the company's market performance and future strategies.
Conclusion
The block deal involving Mphasis has created a buzz in the market, primarily due to Blackstone's significant stake sale. With a substantial portion of the company's equity changing hands, it will be crucial to monitor how this transaction influences Mphasis's share price and overall market position in the coming months. Investors and analysts will be keenly observing the company's performance, especially given its critical role in the BFSI sector and its specialization in cloud and digital solutions.
Disclaimer: For educational purposes only. Not investment advice. Conduct your own analysis or seek professional advice before investing.
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