On Monday’s trading session, the share price of an IT solutions provider specialising in cloud and cognitive services fell by 4.8 percent to Rs. 2,353.55, after the promoter Blackstone sold a 15.6 percent stake in the company worth over Rs. 7,066 crore.
With a market cap of Rs. 44,914.77 crore, at 11:34 a.m., the shares of Mphasis Limited were trading in the red at Rs. 2,386.15, down by 3.5 percent, compared to its previous closing price of Rs. 2,472.3.
Nearly 2.95 crore equity shares of Mphasis Limited (equivalent to a 15.6 percent stake) were reported to exchange hands via a block deal on 10th June. The total transaction value of the shares was reported to be over Rs. 7,066 crore, with an average price of Rs. 2,392 per share, according to CNBC.
Blackstone is most likely to be the seller in the IT company; however, it was previously reported that the promoter is expected to sell a 10.6 percent stake through block deals at a base price of Rs. 2,350 apiece. Moreover, the shares involved in the block deal are subject to a 180-day lock-in period.
Incorporated in Singapore, BCP Topco IX Private Limited is linked to the world’s largest alternative asset manager Blackstone.
As of the March 2024 shareholding pattern, BCP Topco holds 10.47 crore equity shares, representing a 55.45 percent stake, in Mphasis.
With this block deal, Blackstone’s stake will be reduced to 39.85 percent, but it will continue to be the largest shareholder in the company.
In terms of financials, the company reported a growth in revenue from operations by 2.2 percent QoQ from Rs. 3,337.95 crore in Q3 FY23-24 to Rs. 3,412.05 crore in Q4 FY23-24, accompanied by a rise in after-tax profit by 5.2 percent from Rs. 373.6 crore to Rs. 393.22 crore, during the same period.
In FY25, the company expects a target operating (EBIT) margin band of 14.6 percent to 16 percent, maintaining sustainable and steady margins in the narrow band and focusing on productivity, efficiencies and operating leverage.
Mphasis’ shares have delivered nearly 26 percent returns in the last one year, but is down by around 12.8 percent year-to-date.
Incorporated in 1992, Mphasis Limited is a global Information Technology (IT) solutions provider specialising in providing cloud and cognitive services and applies next-generation technology to help enterprises transform
businesses globally.
Written by Shivani Singh
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