Hulst BV, owned by Baring Private Equity Asia, will sell its whole 26.63% investment in Coforge

24 Aug 2023 , 12:24 PM

Sources tell CNBC Awaaz that Hulst BV, the promoter of Coforge Ltd (previously NIIT Technologies), is seeking to sell all of its 26.63% ownership in the mid-sized IT company through a block sale.

The share price floor has been set at Rs 4,550, which is a 7.4% reduction from the current market price of Rs 4,901.95.

Funds connected to BPEA (Baring Private Equity Asia) own and manage the Hulst BV, a company with a registered office in the Netherlands. According to sources, Hulst BV will sell 1.62 crore shares, bringing the total transaction value to almost Rs 7,400 crores.

Hulst BV sold a 3.5% share in Coforge earlier in May for Rs 887 crore in an open market transaction. The average price paid for the shares sold was Rs 4,125.44. Hulst BV sold a 9.8% share in the IT company in February of this year.

In 2019, the private equity firm bought a share in the mid-tier IT business. At the conclusion of the March 2021 quarter, it owned 63.99 percent of Coforge; this percentage was later reduced through share sales.

According to BSE records, Hulst BV owned a 26.63% ownership in the company as of June 30, 2023.

For the period of April through June, Coforge’s revenue climbed by 2.4% sequentially to $271.8 million. In constant currency terms, Coforge’s revenue increased by 2.7%, which was less than the anticipated sequential growth of 3.5%.

According to a stock exchange filing made by Coforge on July 20, the business reported sales of Rs 2,221 crore in the June quarter compared to Rs 2,170 crore in the previous quarter.

However, the mid-cap IT services provider saw a 43.9% increase in net profit to Rs 165.3 crore as a result of the need to cover an unusual expense of Rs 52.3 crore in the March quarter.

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