Asia-focused private equity firm (PE) Baring Private Equity Asia is selling its stake worth almost ₹ 1,120 crore in IT services company Hexaware Technologies Ltd, said a person aware of the development. Baring PE Asia currently holds a 71.25% stake in the IT company, through an entity called HT Global IT Solutions Holdings Ltd.
“Baring is selling over 8% stake in Hexaware through a block deal. Investment bank Citi is running the transaction. The share sale is expected to fetch the PE firm a little over Rs 1,100 crore at a floor price of around Rs 447.5 per share. Shares will be sold to institutional investors,” said the person, requesting anonymity, as he is not authorised to speak with the media.
The floor price of the stake sale is at an almost 10% discount to Thursday’s closing price of Rs 497.7 per share, on BSE, data from the stock exchange shows.
A spokesperson for Baring PE Asia could not be immediately reached for comment. Citi declined to comment on the development.
Baring, in 2013, had acquired a 42% stake in the company, buying out stakes of Hexaware founder Atul Nishar and private equity firm General Atlantic for around Rs 1,600 crore. The PE firm had later acquired additional stake in the company through a mandatory open offer.
Baring’s other investment in India is CMS Info Systems Ltd, country’s largest cash management company, which it acquired for around ₹ 2,000 crore in 2015. The company has filed a draft prospectus for its initial public offering.
Source: Mint