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Blackstone heading to decrease its Mphasis stake from 55.45% to 40.4%

Blackstone is poised to sell a 10.6 percent stake in IT company Mphasis Ltd through block deals at a base price of Rs 2,350 per share, CNBC TV-18 reported citing sources. The base price is at a discount of 5 percent from the last close.

The base transaction is valued at Rs 4,700 crore, as reported by multiple sources familiar with the development. An upsize option could expand the stake sale to 15.1 percent, potentially raising the total deal value to Rs 6,697 crore.

The deal includes a 180-day lock-in period for the shares involved. BCP Topco, a private limited company incorporated in Singapore, is linked to the major private equity firm Blackstone.

As of the end of March 2024, Blackstone holds a 55.45 percent stake in the Bengaluru-based company. Following the transaction, Blackstone’s stake will decrease to 40.4 percent, but it will continue to be the largest shareholder in the company.

In the March quarter of FY24, Mphasis posted a 2.98 percent decline in consolidated net profit, amounting to Rs 393.2 crore, compared to Rs 405.3 crore in the same period the previous year. However, the company’s consolidated revenue from operations slightly increased to Rs 3,142 crore during the fourth quarter of the previous fiscal year, up from Rs 3,361.2 crore a year earlier.

Mphasis reported new total contract value (TCV) wins of $177 million (approximately Rs 1,475 crore) for the reporting quarter. For the year ending March 31, 2024, the company recorded a 5 percent decline in consolidated net profit to Rs 1,558.8 crore. Annual revenue from operations dropped by about 4 percent to Rs 13,278.5 crore in FY24.

Shares closed at Rs 2,468.80 on the BSE, up Rs 31.85 or 1.31 percent. Mphasis shares have tanked 10 percent since the start of the year. Trading View

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