Mastek sells its partial stake in Majesco; stock surges 6%

The net proceeds from the sale will be reinvested into the growth of Mastek as part or its committed Vision 2020 strategy.

Dec 13, 2019 06:12 IST India Infoline News Service

Mastek confirmed the partial sale of its legacy shareholding in Majesco, USA throug a BSE press release today. The stock is trading higher by more than 6% in trade today.

An initial 2,000,000 shares were sold for USD 15.94 Mn and the balance of 3,044,875 is intended to be sold in ensuing future. The net proceeds from the sale will be reinvested into the growth of Mastek as part or its committed Vision 2020 strategy.

Mastek Group EO John Owen commented, "As part of our Vision 2020 strategy, we have consistently stated that Mastek will divest non-core assets and use the proceeds to accelerate our core business plan to be a recognised leader in Enterprise Digital Transformation. Under Vision 2020, the Mastek team has successfully repositioned the Company, delivered improved performance, and executed its strategic goals over the past three years. Our decision to sell this legacy shareholding in Majesco and reinvest the proceeds back into Mastek's core business further demonstrates our commitment and confidence to deliver a better return to our shareholders through the continued growth and success of our core business." 

Stock view:
Mastek Ltd is currently trading at Rs378 up by Rs19.75 or 5.51% from its previous closing of Rs358.25 on the BSE.

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