Patni scrip up 3.6% after iGate stake sale approval

Shares of Patni Computer Systems on Monday went up over 3 per cent on the Bombay Stock Exchange after the company's board approved stake sale to US-based information technology firm iGate for an estimated $915 million.

According to the deal, iGate would pick up 63 per cent stake in Patni at Rs 503 per share. Reacting to the development, Patni rose 3.66 per cent on BSE to touch an early high of Rs 476.95.

Similarly, the stock surged 6.38 per cent on the National Stock Exchange.

"The Rs 503-a share pricing is good for the Indian IT major. Moreover, the deal is more valuable for iGate," Stock Broking head of institutional business Prakash Diwan said.

In terms of volume, over 21 lakh shares of Patni were traded on the two bourses.

"The market was expecting the stake sale to happen at or over Rs 540 a share so, in all likelihood the deal is more creamy for iGate," CNI Research CMD Kishore P Ostwal said.

Meanwhile, the BSE 30-share index Sensex was trading at 19,468.78, down 223 points at 10.56 am.