Blackstone holds 55.45% in the Bengaluru-based company as of the end of March 2024 under the name of BCP TOPCO IX PTE, according to a BSE filing. Post the block deal, Blackstone’s stake will drop to 40.4%, and will remain the largest shareholder in the company. The firm declined to comment on the stake sale.
Mphasis is a leading provider of information technology services specializing in cloud and digital solutions. It has deep domain expertise in the banking, financial services, and insurance sectors (BFSI).
The sellers have put up 28.5 million shares for sale with a floor price of Rs 2,350 per share. This represents a 5% discount based on the closing price of Rs 2,471 on Friday. IIFL is serving as the banker for the deal. The base offer of the block is 20 million shares, equivalent to 10.5% of the outstanding equity shares, which can be increased to 28.5 million, constituting 15% of the total equity.
The US-based PE fund initially bought a stake in Mphasis in 2016 from Hewlett Packard Enterprise at Rs 430 per share. HP had a 60.5% stake in Mphasis when it signed a definitive agreement with Blackstone. In April 2021, Blackstone disclosed its plan to transfer its majority ownership in Mphasis from its current fund to two new funds, opting out of its earlier intention to sell the stake to an external party. This strategic manoeuvre allowed Blackstone, to maintain its investment for a prolonged period. Blackstone committed up to $2.8 billion to acquire a controlling stake in Mphasis, with ADIA, UC Investments, and other long-term investors at a blended purchase price ranging from Rs 1,452 per share to Rs 1,497 per share according to a press release.
