Mphasis Block Deal: Stock in focus as promoter Blackstone likely to pare stake for ₹4,600 crore

Shares of Mphasis Ltd. will be in focus on Tuesday, November 18, as the company is set to witness the largest block deal among the three expected today, confirming a CNBC-TV18 newsbreak.

Block deals are also likely in Paytm and Emcure Pharma, where existing promoters or private equity firms are expected to be sellers.

Mphasis promoter Blackstone is likely to sell up to 9.5% of the company's total equity through block deals in today's session. The floor price is pegged at ₹2,570 per share, a 4.4% discount to Monday's closing price.

At the floor price, the total deal size amounts to roughly ₹4,626 crore.

A 180-day lock-in on further selling will also be applicable to the seller.

Responding to CNBC-TV18's report, Mphasis informed the exchanges that the company is not a party to this potential transaction, as it involves its promoter BCP Topco IX Pte. Ltd. (part of the Blackstone Group). The company added that it has reached out to its promoters for further clarity.

Citigroup is the merchant banker to the transaction.

In June last year, Blackstone sold around 15.6% in Mphasis for nearly ₹7,066 crore.

Blackstone has been a majority shareholder since 2016, and in 2021 the US-based PE firm spent $2.8 billion to acquire a controlling stake.

As of the September quarter, BCP Topco IX Pte. Ltd. held a 40.1% stake in Mphasis.

Mphasis is a leading IT services provider with strong capabilities in cloud and digital solutions, and deep domain strength in the BFSI sector.

Shares of Mphasis settled 3.25% lower at ₹2,682 on Monday. The stock is down 6% year-to-date.