Mphasis Block Deal: Blackstone to Sell 15% Stake Worth Rs 6,697 Crore

Mphasis Block Deal: Blackstone to Sell 15% Stake Worth Rs 6,697 Crore

Key Points

Blackstone Group LP, the private equity giant, is selling a 15% stake in Mphasis, an Indian IT services company.
The deal is valued at Rs 6,697 crore (approximately $872 million).
Blackstone will sell 76.5 million shares in Mphasis at a price of Rs 87.60 per share.
The block deal will reduce Blackstone’s stake in Mphasis from 26.2% to 11.2%.
The sale will be completed through a block deal on a stock exchange, expected to be on April 21, 2023.

Background

Blackstone acquired a majority stake in Mphasis in 2016 for approximately $1.1 billion. Over the years, the company has grown significantly under Blackstone’s ownership.

Significance

The block deal is a significant event for Mphasis as it will result in a change in ownership structure. It also reflects the positive performance of the company under Blackstone’s guidance.

Market Reaction

The announcement of the block deal had a positive impact on Mphasis’s share price. The stock rose by 3% on April 20, 2023, the day after the announcement.

Keywords

Mphasis
Blackstone
Block Deal
Private Equity
IT Services