Mphasis Sees Rs 7,066 Cr Block Deal as Blackstone Offloads 15.6% Stake

Mphasis Sees Rs 7,066 Cr Block Deal as Blackstone Offloads 15.6% Stake

Keywords: Mphasis, Block Deal, Blackstone, Stake Sale

Mumbai, India – Leading Indian IT services provider Mphasis on August 19, 2022, witnessed a significant block deal worth Rs 7,066 crores ($897 million). Global investment firm Blackstone, which had held a 15.6% stake in Mphasis, offloaded its entire shareholding through the transaction.

According to regulatory filings, Blackstone sold 70.5 million shares at a price of Rs 100.2 per share. The block deal was executed through the Bombay Stock Exchange (BSE).

The transaction represents an exit for Blackstone, which had initially acquired a 26% stake in Mphasis in 2016 for around Rs 2,500 crores. Over the years, Blackstone has gradually reduced its stake in the company.

The block deal attracted interest from several institutional investors, including mutual funds, pension funds, and foreign portfolio investors. The transaction was facilitated by Kotak Mahindra Capital Company and HSBC Securities and Capital Markets (India) Private Limited.

Following the block deal, Mphasis’s largest shareholders now include:

BU Bhandari Family Trust (26.3%)
Hewlett Packard Enterprise (25.4%)
HDFC (10.2%)

The proceeds from the block deal are expected to provide Blackstone with a substantial return on its investment in Mphasis. The transaction also reflects the growing interest from global investors in the Indian IT sector.

Mphasis’s stock price reacted positively to the announcement of the block deal, rising by over 2% during the trading session. The company has been performing well in recent quarters, driven by strong demand for its digital transformation and cloud computing services.