Private equity major General Atlantic has sold 2.3 per cent stake in the Hyderabad-based Infotech Enterprises in the open market for Rs 31.5 crore. The shares were sold by the private equity firm in the Bombay Stock Exchange on Monday, which brings down its stake from 14.72 per cent to 12.4 per cent.
The development comes after the PE firm exited Patni Computers earlier this year in a strategic sale. Also the PE firms India head Ranjit Pandit had said that it is looking to sell stakes in its information technology companies either through market sales or strategic sales.
Other IT firms in its portfolio include Genpact Ltd and Hexaware Technologies Ltd., though Infotech Enterprises was it latest deal.
General Atlantic sold the shares in Infotech Enterprises at Rs 121 per unit, which is a 33 per cent discount to its investment price of Rs 180 per unit, according to VCCedge, the financial research platform of VCCircle. General Atlantic, along with air conditioning major Carrier, had invested in the company in 2007 at Rs 360 per share after which the company declared 1:1 bonus in 2010.
The share price of Infotech Enterprises was up 6.43 per cent at Rs 128.85 on close of trade on Monday. General Atlantic continues to be the largest non-promoter shareholder in the company, followed by Carrier International at 11.63 per cent. Sequoia Capital has also bought a 4.48 per cent stake in the company through its arm.
Infotech Enterprises Limited, together with its subsidiaries, provides geospatial, engineering design, and information technology (IT) solutions. The company also provides product development and lifecycle support, process, network, and content engineering solutions.
The company operates in two segments, Network and Content Engineering, and Engineering, Manufacturing, Industrial Products. The company operates primarily in India, North America, and Europe.
Early this month, Infotech Enterprises had acquired the 26 per cent stake it didn’t own in its subsidiary Infotech Geospatial (India) Limited for an undisclosed sum. Infotech Enterprises had acquired 74 per cent in Geospatial Integrated Solutions around four years ago.
In January 2010, the company acquired Illinois-based Daxcon Engineering Inc., a company engaged in the business of providing product design engineering services to original equipment manufacturers. In August last year it also acquired US-based a telecom engineering services provider Wellsco.
Infotech Enterprises employs over 9,000 employees and has plans to hire 1,000 employees in the second half of this fiscal ending March 2012.