Shares of Blue Star Infotech fell nearly 20 per cent to Rs 231 after it announced the sale of its IT business.
Infogain Inc, a portfolio company of private equity player ChrysCapital, with acquire the IT business of Blue Star Infotech and its subsidiaries in USA, UK and Singapore for Rs 180 crore.
Blue Star Infotech will retain the real estate business and some other assets, the fair value of which is expected to be around Rs 96.7 crore, the company said.
Following the completion of Blue Star Infotech's IT business sale, it will be merged with air conditioning and commercial refrigeration major Blue Star Limited, subject to shareholder approval of the respective companies.
Blue Star forayed into the IT space in 1983. In 2000, the Blue Star executed a strategic shift to hive off its IT business into an independent company, Blue Star Infotech.
Shareholders of Blue Star Infotech will be issued 7 equity shares of 7 Blue Star for every 10 shares held. Vir S Advani, executive director and president of Blue Star, told NDTV that the cash proceeds from sale of Blue Star Infotech's IT business will be invested in its core business.
At 11 a.m., shares of Blue Star Infotech were locked at the lower circuit band of 20 per cent while Blue Star shares were 4 per cent higher at Rs 345.30. In comparison, Nifty was 0.67 per cent higher.
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