The stock of Mphasis rose more than 6% intraday after private equity firm Blackstone agreed to invest up to $2.8 billion in a majority stake in the company.
In 2016, Blackstone purchased a 60.5 percent stake in Mphasis, a Mumbai-listed company, from Hewlett Packard Enterprise Co. for 430 per share, betting on double-digit growth in India's information technology sector.
According to the bid document filed with the stock exchanges by JM Financial Ltd, the manager of the offer, three Blackstone entities have now offered to purchase an additional 49.3 million shares in Mphasis at $1,677.16 per share.
Though the stock has fallen from its 52-week high of Rs 1,835, it is still more than four times higher than Blackstone's bid price from five years ago. At 1.51 pm IST, the stock was trading at Rs 1,747 up 3.01% after touching an intra-day high of Rs 1,805.
The acquiring entity has issued a public statement to the stock exchanges, triggering a mandatory open bid for the acquisition of up to 26 percent additional shares of the company from public shareholders.
The blended purchase price will range from Rs 1,452 to Rs1,497 per share, and the purchase consideration will range from Rs 152 billion to Rs 210 billion, depending on the open bid subscription. In September 2016, a Blackstone-managed fund bought a majority stake in Mphasis from Hewlett Packard Enterprise (NYSE: HPE).
Blackstone's $649 billion in assets under management span private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets, and secondary funds, all of which are managed globally.