Hexaware climbs 2% on reports Baring Private Equity Asia plans to offload 71% stake

NEW DELHI: Shares of Hexaware climbed over 2 per cent in Wednesday’s trade on reports that Baring Private Equity Asia, a majority stockholder, is looking to divest 71 per cent of its stake in the IT firm.

The stock rose 2.5 per cent to hit a high of Rs 256 on BSE. Even at this price, the stock was down 24 per cent from its 52-week high of Rs 335.45 hit on April 13, 2014.

The stake sale, if materialises, would peg the value of the midcap IT firm at Rs 8,000 crore. The market capitalisation of Hexaware stood roughly at Rs 7,600 crore at the end of Wednesday’s trade.

The stake sale would also trigger a mandatory open offer for the shares held by the public.

At the end of September quarter, HT Global IT Solutions Holdings, an affiliate of Baring Private Equity Asia, under the laws of Mauritius, owned 71.32 per cent in Hexaware.

The Hong Kong-headquartered investor has initiated talks with France’s Capgemini and private equity funds such as the Blackstone Group and the Carlyle Group, multiple sources close to the development told The Economic Times. Baring Private Equity Asia denied having any such talks.

Baring bought a 41 per cent stake in Hexaware from founder Atul Nishar and his family and US private equity fund General Atlantic Partners in 2013. It subsequently increased the stake to 71 per cent through an open offer by buying out minority investor ChrysCapital. For Capgemini, a deal could help enhance its India presence significantly, said the ET report.