Mphasis Block Deal: Promoter Blackstone To Pare Stake For Rs 4,600 Crore
A Blackstone affiliate is set to sell up to 1.8 crore shares at Rs 2,570 each, a discount of about 4.4% to the last closing price.
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Mphasis Ltd. promoter Blackstone Inc. will offer up to 9.5% equity via large deals on Tuesday, according to a termsheet.
BCP Topco IX Pte., an affiliate of Blackstone, is set to sell up to 1.8 crore shares at Rs 2,570 each, a discount of about 4.4% to the last closing price of Rs 2,688.7. The total deal size at the floor price amounts to nearly Rs 4,626 crore or $522 million.
The private equity giant holds 40.1% stake in Mphasis, as per latest shareholding data on the BSE. The balance equity after the large deal will be subject to 180 day lock in.
Citigroup is the merchant banker to the large deal.
In February, Blackstone sold around 15% in Mphasis for nearly Rs 6,700 crore.
Mphasis is one of the leading providers of Information Technology services specialising in cloud and digital solutions. It has deep domain expertise in the Banking, Financial Services and Insurance sectors (BFSI).
Blackstone has been a majority shareholder in the company since 2016. The US firm spent $2.8 billion in 2021 to acquire a controlling stake in the company.
In the September quarter, revenue rose 4.5% sequentially to Rs 3,902 crore and profit growth of 6.2% at Rs 469 crore.
Operating income or Ebitda increased by 4.4% to Rs 596 crore, but margin dipped by 30 basis points to 15.26%.
Deal wins during Q2 was at $760 million, compared to $390 million.
Shares of Mphasis settled nearly 3% lower at Rs 2,689.3 on the BSE, compared to the benchmark Sensex. The stock has fallen 6% so far this year.
