Block Deal in Mphasis 15% stake changes in Large Trade

Mphasis Limited is an Indian multinational information technology services and consulting company based in Bangalore. The company provides infrastructure technology and applications outsourcing services, as well as architecture guidance, application development and integration, and application management services. It serves the financial services, telecom, logistics, and technology industries. In April 2016, Hewlett Packard Enterprise sold the majority of its stake in Mphasis to Blackstone Group LP for around US$1 billion. The technology company has a market capitalization of more than 45,000 crores.

Mphasis stock falls after block deal

Global investment management firm Blackstone has likely offloaded a 15% stake in IT services and consulting company Mphasis on Monday. The transaction, valued at over Rs 7,000 crore, led to a decline in Mphasis’s share price, bringing it down to a low of Rs 2,352.60 on the National Stock Exchange (NSE). This significant movement in the market marks the second-largest block deal of the year. The largest was British American Tobacco’s divestment of a 3.5% stake in ITC, which raised nearly Rs 17,000 crore. BlackStone’s substantial sale underscores the volatility and dynamic shifts within the investment landscape.

Shareholding as of March 31, 2024

Stock Reaction

After this block deal news, The stock of Mphasis is trading down by -3.84% at Rs.2375.70 today, The stock has given 5% returns this month and is up by 25% over the past year. It has a 52-week high and 52-week low of Rs.2837.60 and Rs.1807.60 respectively.

Conclusion

The sale of a 15% stake in Mphasis for over Rs 7,000 crore resulted in a 3.7% decline in Mphasis’s share price. This marked the year’s second-largest block deal, following British American Tobacco’s divestment in ITC.  The stock of Mphasis currently trades at Rs.2,375.70 a piece down by -3.84%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.