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Blackstone joins Baring in wait to exit profitable India IT investment
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Blackstone Group LP had struck a neat deal when it bought a majority stake in Mphasis Ltd in 2016
(Bloomberg)
Five years after Blackstone bought a stake in Mphasis, it is sitting on profits of 300% on investment
Baring has been struggling to find a buyer for its stake in Hexaware, even after 7 years of acquisition
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Blackstone Group LP had struck a neat deal when it bought a majority stake in Mphasis Ltd in 2016. The deal was at a 30-35% valuation discount to similar-sized companies such as Mindtree Ltd and Hexaware Ltd. Now, almost five years after it announced the deal, it is sitting on profits of nearly 300% on the investment. But as of now, it is just on paper.
US private equity Advent International has pared its holding further in Crompton Greaves Consumer Electricals. According to bulk deal data, Advent-owned Amalfiaco sold 6.06 per cent stake in CG Consumer in two equal tranches at Rs 392 per share and Rs 393 per share. This resulted in raising of Rs 1,492 crore from the transaction. Alongside, Societe Generale has picked up 0.62 per cent stake for Rs 153 crore. Meanwhile, identity of other buyers could not be ascertained. Investment banker said mutual funds and foreign portfolio investors were also among the buyers. Today, shares of CG Consumer ended at Rs 407 per share on BSE, down 0.45 percent from previous close.
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