Mphasis Sees Major Stake Sale as BCP Topco Divests 10.6% Stake

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Synopsis:

BCP Topco IX Pte plans to sell a 10.6% stake in Mphasis Ltd for ₹2,350 per share. The deal could rise from 10.6% to 15.1%, escalating the value up to ₹6,697 crore if the option is exercised.

Mphasis News Today

BCP Topco IX Pte, a company linked to private equity giant Blackstone, is set to divest a significant stake in IT company Mphasis Ltd. The proposed sale will be conducted through block deals, with a base price of ₹2,350 per share. The initial transaction size is valued at ₹4,700 crore.

Explore: MPHASIS LIMITED

Potential Upsize Option

In addition to the base transaction, there is an upsize option that could increase the stake sale from 10.6% to 15.1%. If this option is exercised, the total value of the deal could escalate to ₹6,697 crore. This strategic move includes a 180-day lock-in period for the shares involved in the transactions.

Mphasis Financial Performance

For the March quarter of FY24, Mphasis reported a consolidated net profit of ₹393.2 crore, which marks a 2.98% decline from ₹405.3 crore in the same quarter of the previous year. Despite this dip in profits, the company's revenue saw a slight increase.

On an annual basis, Mphasis recorded a 5% decline in consolidated net profit, amounting to ₹1,558.8 crore for FY24, down from ₹1,637.9 crore in FY23. Similarly, the annual revenue from operations also decreased by approximately 4%, dropping to ₹13,278.5 crore in FY24 from ₹13,798.4 crore in the previous fiscal year.

Additional Read: Mphasis Sees Major Stake Sale as BCP Topco Divests 10.6% Stake

In Conclusion

BCP Topco IX Pte’s planned sale of its stake in Mphasis Ltd marks a notable move in the market, potentially altering the ownership landscape of the IT company. Despite facing a decline in profits, Mphasis has demonstrated resilience through steady revenue and substantial contract wins, positioning it well for future growth.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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