Mphasis surges 6% as Blackstone to buy controlling stake in firm

Shares of Mphasis jumped over 6 per cent in intra-day trade on Monday after private equity (PE) firm Blackstone Group said it will buy a majority stake in the company for a consideration of $2.8 billion. A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors will be co-investing along with Blackstone.

Following the development, the shares of IT outsourcing services provider touched a high of Rs 1,805 on the BSE. At 1.55 pm, the scrip pared gains and was trading 2.50 per cent higher at Rs 1,740.25 as against a rise of 1.20 per cent in the S&P BSE Sensex.

Blackstone had bought around 61 per cent stake in Mphasis from Hewlett Packard Enterprise in 2016 in a deal worth up to $1.1 billion.