BPEA EQT Sells Entire Stake in Coforge

25 Aug 2023 , 02:10 PM

On Thursday, BPEA EQT made a significant move by offloading its entire stake of 26.63% in Coforge Ltd, formerly known as NIIT Technologies. The sale amounted to a substantial Rs 7,684 crore and was executed through a series of bulk deals involving multiple investors.

Due to these transactions, Coforge has witnessed a remarkable surge in its stock price, soaring by approximately 10% to reach Rs 5,391. This achievement marks a momentous shift for the company as it becomes the first of its kind in the software services sector to be fully owned by public investors, with no identifiable promoter.

Noteworthy participants in the block deals include prominent investors like SBI Mutual Fund, Aditya Birla Mutual Fund, Capital Group, and Kotak Mahindra Group, signifying the heightened interest generated by the sale.

BPEA divested its 16.27 million shares at a rate of Rs 4,722.15 per share through a series of bulk transactions. Notably, this selling price reflected a slight discount of 4% from Coforge’s closing price on the previous day, which stood at Rs 4,913.1.

Coforge operates primarily in the realm of digital services, focusing on sectors such as banking, financial services, insurance, travel, and transportation. The company’s footprint extends across 21 countries, encompassing 26 delivery centers spanning nine nations.

BPEA’s strategic move to sell shares at Rs 4,722 each has resulted in an impressive return of nearly 240%, tracing back to its acquisition of Coforge shares in 2019 at the rate of Rs 1,394 per share.

 

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