Mphasis share price jumped over 2 per cent in the early trade on Monday after a private equity firm Blackstone announced that it will acquire HP Enterprise’s (HPE) stake in Mphasis for up to Rs 7,071 crore, marking the largest IT deal for the US-based firm in India.
At 9.24 am, Mphasis shares were trading 2.09 per cent up at Rs 477.15. Later, the share price of the company ended 2.77 per cent down at Rs 454.45.
Hewlett Packard Enterprise (HPE) currently owns 60.5 per cent stake in Mphasis. As per the Takeover Code in India, this transaction will trigger a mandatory open offer for a purchase of additional 26 per cent shares of the company and the acquiring entity has released a public announcement to the stock exchanges.
The sale is expected to complete in the coming months, subject to customary closing conditions and approvals.
In a filing to BSE, Mphasis said Blackstone along with Marble I and Marble II, have made an offer to buy 26 per cent stake in HP-owned IT firm Mphasis for over Rs 2,513 crore. Under the open offer, the entities will acquire up to 5.49 crore equity shares, representing 26 per cent stake, at a price of Rs 457.54 per equity share (the offer price). This aggregates to total consideration of over Rs 2,513.18 crore, in cash, subject to the terms and conditions, it said.
For the quarter ended ended December 2015, Mphasis reported a consolidated net profit of Rs 173.64 crore, down 6 per cent against Rs 184.72 crore in the sequential quarter ended September 2015. The company registered net profit of Rs 161.96 crore in the corresponding quarter ended December 2014.
In the past one year, share price of Mphasis ralled 19.14 per cent to Rs 467.40 till April 1, whereas the BSE Sensex dipped 10.58 per cent to 25269.64 during the same period.