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The private equity firm is looking to sell shares worth Rs 1,200 crore with a greenshoe option, which allows for the underwriters to sell additional shares if there is high demand, according to the sources.
As many as 60 lakh shares of Coforge, equivalent to 9.8 percent equity, changed hands at an average of Rs 4050 per share in the pre-open trade on Monday. The total value of the block deal is Rs 2,460 crore. Hong Kong based private equity firm Barings PE is likely the seller in the deal.
Barings stake in Coforge is now down to 30 percent from high of 70 percent in September 2020.
On Feb 11, CNBC Awaaz reported that a large block deal in Coforge will likely take place soon. Barings PE is likely to sell stake in infotech firm Coforge Ltd, which was previously known as NIIT Technologies Ltd, sources had told CNBC Awaaz.
It was reported that the private equity firm is looking to sell shares worth Rs 1,200 crore with a greenshoe option, which allows for the underwriters to sell additional shares if there is high demand, according to the sources.
This is not the first time Barings PE has sought to sell its stake in Coforge. In March 2022, the Hong Kong-based private equity firm partially exited the company, selling 60 lakh shares for aggregate gross proceeds of Rs 2,560.32 crore.
This latest move by Barings PE to sell its stake in Coforge is part of its strategy to divest its holdings in mature companies and invest in new and emerging opportunities.
The private equity firm is known for its focus on long-term investments, and its latest decision to sell its stake in Coforge is in line with this approach.
Coforge on Monday also announced its partnership with data integration, management and delivery platform, Denodo to enable banks and other financial organisations to engage in agile modernisation projects without affecting daily operations.