In another big bang exit from the same company, Baring Private Equity Partners India has sold a 2.1% stake in the IT services company Mphasis Ltd for nearly Rs 190 crore. The private equity player made a first exit when Mphasis was acquired by global IT services giant Electronic Data Systems Corporation (EDS) in 2006.
On September 8, the day on which stake sale took place, Mphasis shares were trading between Rs 595 and Rs 614.
Baring still holds a 10.4% stake in Mphasis post this transaction. On the basis of Wednesday’s closing share price, this stake will worth Rs 1,320 crore.
Baring PE held on to part of the investment, which was made out of its first fund, Baring India Investments Ltd PCC. When the Indian markets sank earlier this year, the PE firm cashed in on the opportunity and picked up some more stake from its latest $540 million fund.
Last year, Hewlett-Packard acquired EDS, which holds a 60% stake in Mphasis. In 2006, Baring sold 34.73% in Mphasis to EDS when the latter acquired the IT company. The Delhi-headquartered private equity firm made about $255.5 million on an investment of $10-15 million in the company in its early stages.
At the end of June 2009, Baring India Investments Ltd PCC held a 7.5% stake in the firm while Baring India Pvt Equity Fund III Listed Investments Ltd held a 5% stake. The Fund III had picked up 3.6% stake in March this year at the share price of Rs 170 from the open markets.