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Blackstone has sold 15.08% of its stake in IT firm Mphasis, amounting to 2.85 crore shares, through a block deal on the NSE. This transaction generated INR 6,735 crore, making it the year's second-largest block deal after British American Tobacco's INR 17,485 crore sale in ITC. Blackstone initially acquired a 60.48% stake in Mphasis in 2016 for INR 5,466 crore, with their investment value growing over 400 times since. While still holding 40.37%, this sale marks a strategic shift. Institutional investors' participation in the block deal underscores confidence in Mphasis's future prospects.
Blackstone, a major investor in IT firm Mphasis, has sold a portion of its holdings in the company. Earlier this week, the private equity giant offloaded 15.08% of its stake, or 2.85 crore shares, through a block deal on the National Stock Exchange (NSE). This transaction generated INR 6,735 crore for Blackstone, making it the second-largest block deal of the year so far, following British American Tobacco's (BAT) sale of INR 17,485 crore worth of shares in ITC. Advertisement
This sale marks a significant return on investment for Blackstone. The firm had initially acquired a 60.48% stake in Mphasis in 2016 for INR 5,466 crore, when the share price was around INR 430. Since then, the value of their investment has grown over 400 times.
Blackstone's decision to sell a portion of its stake reflects a strategic shift. While the firm remains the largest shareholder in Mphasis with a holding of 40.37%, this sale suggests they are taking some profits off the table. Blackstone has a history of long-term investments in the Indian tech sector, with successful exits from companies like Intelenet, which they acquired for USD 385 million and later sold for USD 1 billion, and IBS Software, where their stake was acquired by Apax for USD 450 million. This move might indicate a similar strategy for Mphasis, with Blackstone potentially looking to fully exit in the future.
Despite the sale, Mphasis's operations and future prospects seem unaffected. The company's stock price experienced a slight dip following the news, but it has a strong track record of growth. Several institutional investors, including Kotak Mutual Fund (investing INR 1,121 crore), Morgan Stanley (INR 526 crore), and Societe Generale (INR 251 crore), participated in the block deal, demonstrating continued confidence in Mphasis.
This transaction highlights the dynamism of the Indian IT sector. Blackstone's move showcases the potential for significant returns in the industry, with their investment growing over 400 times in value. Mphasis's continued stability, attracting strong institutional investors, underlines its strong fundamentals.
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