Share of Mphasis rose over 6% today after private equity firm Blackstone committed up to $2.8 billion to acquire a controlling stake in the company. Mphasis share touched an intraday high of Rs 1,805, 6.32% higher on BSE.
The stock has risen 5.02% in the last 2 days. Mphasis is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 156% in one year and risen 12% since the beginning of this year.
Market cap of the firm rose to Rs 33,288 crore.
Later, the stock ended 1.62% higher at Rs 1,725 on BSE.
Blackstone said funds managed by it have entered into definitive agreements to acquire a majority stake in Mphasis, and the transaction will trigger an open offer for the acquisition of up to 26 percent stake.
A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments (Office of the Chief Investment Officer of The Regents, University of California) and others will co-invest along with Blackstone, a statement said.
The sale is likely to complete in the coming months, subject to customary closing conditions and regulatory approvals.
Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 to Rs 1,497 per share (12-16 per cent premium to 12-month average price and 3-6 per cent discount to 6-month average price) and the purchase consideration will vary between Rs 15,200 crore to Rs 21,000 crore (approximately USD 2-2.8 billion), the statement said.
Mphasis in a regulatory filing said that "BCP Topco IX Pte Ltd along with Blackstone Capital Partners Asia NQ LP and Blackstone Capital Partners (CYM) VIII AIV - F LP... have announced an open offer for the acquisition of up to 49,263,203 fully paid-up equity shares... from the public shareholders of Mphasis Ltd, representing 26 per cent of the Expanded Voting Share Capital, at a price of Rs 1,677.16 per equity share."
This aggregates to a total consideration of Rs 8,262.23 crore, as per the filing.
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