Baring PE sells entire stake in Coforge for Rs 7,683 cr in bulk deal; Morgan Stanley, SBI MF among buyers

Promoter Baring PE, through its affiliate Huslt BV, has sold its entire stake in IT services company Coforge through bulk deals on Thursday.

Hulst BV has offloaded 26.6% stake or 1.62 crore shares at a price of Rs 4,722 apiece, garnering about Rs 7,683 crore, according to exchange data.

Further, deals data showed that marquee funds including Morgan Stanley, ICICI Pru Life, Kotak Funds, SBI MF, SmallCap World Fund have bought the stake in the company.


Earlier in May, Hulst BV had sold 3.5% stake in Coforge through the open market for Rs 887 crore. The private equity firm has been offloading stake in tranches in the company over the last 2-3 years.

Baring PE had taken over Coforge, earlier known as NIIT Technologies, in 2019. Then, it held a 70% stake in the company.

In February this year, the private equity firm sold a significant 9.8% stake in the software company for Rs 2,430 crore.
The company is majority owned by public shareholders with 73.37% stake, while promoters have the remaining 26.63%. Among the public shareholders, mutual funds are sitting with a significant stake of 27% and foreign investors hold about 24%.

India’s largest life insurer Life Insurance Corporation of India (LIC) also owns 6.% in the company, at the end of June quarter.

Coforge posted a higher first-quarter profit and reiterated its full-year revenue growth forecast, driven by a strong increase in orders.

Consolidated net profit rose 10% to Rs 165 crore ($20.1 million) in the quarter ended June, while revenue rose nearly 21% to Rs 2,221 crore.

Noida-based Coforge's order intake for the quarter rose to $531 million, from $315 million last year.

Earlier during the day, the stock closed nearly 10% higher on BSE at Rs 5390.90.