Private equity firms offload stakes in WNS, EXL Service

Written by Kirtika Suneja | New Delhi | Updated: Feb 3 2012, 06:26am hrs
After offloading their stakes in the countrys major banks such as Kotak Mahindra and HDFC, private equity firms (PE) firms are now encashing investments made in business process outsourcing (BPO) companies.

While Warburg Pincus has reduced its stake in the countrys third largest BPO from 48% to 33%, Nasdaq-listed EXL Service has issued a prospectus according to which its investors, mainly Oak Hill Capital Partners will have the option of offloading its complete stake of 17.3%, while the Talwar 1994 Trust would be able to reduce its stake in the BPO from 2.7% to 1.1% and CEO-president Rohit Kapoor would be able to dilute his shareholding from 7.1% to 5.6%.

In fact, WNS is also raising $50 million by proposing to offer 5.25 million new shares through american depository shares (ADS).

PE firms exiting BPO maybe a part of their overall strategy of cashing in on the investments they have already made. First they exited the banks and now BPOs, an analyst said.

EXLs prospectus talks of raising $180 million in primary offering and $154 million as common stock if these shares are sold.

Last year, the New York Stock Exchange-listed WNS had filed a shelf-registration statement with the Securities and Exchange Commission (SEC) that would give its largest shareholder, Warburg Pincus, an exit route.