NIIT spurts as PE firm to acquire stake in NIIT Technologies

NIIT rose 18.49% to Rs 113.10 at 11:22 IST on BSE after the company said Baring Private Equity Asia will acquire 30% stake in NIIT Technologies from NIIT and other promoter entities.

The announcement was made on Saturday, 6 April 2019. Shares of NIIT Technologies was down 2.79% at Rs 1311.90.

Meanwhile, the S&P BSE Sensex was down 29.94 points, or 0.08% to 38,832.29.

On the BSE, 41.17 lakh NIIT shares were traded in the counter so far compared with average daily volumes of 1.79 lakh shares in the past two weeks. The stock had hit a high of Rs 114.50 and a low of Rs 102.60 so far during the day. The stock hit a 52-week high of Rs 125 on 23 April 2018. The stock hit a 52-week low of Rs 60.80 on 8 October 2018.

Funds affiliated with Baring Private Equity Asia ("BPEA"), have signed definitive agreements to purchase approximately 1.88 crore NIIT Technologies shares (approximately 30% shareholding on a fully diluted basis in NIIT Technologies) from NIIT and other promoter entities at a price of Rs 1394 per share. The aggregate consideration for purchase of shares from promoter entities is estimated to be approximately Rs 2627 crore.

BPEA made an open offer to the public shareholders of NIIT Technologies to purchase up to 26% additional shareholding at a price of Rs 1394 per share. The aggregate consideration for purchase of shares from promoter entities and the open offer is estimated to be up to approximately Rs 4890 crore based on ownership of approximately 56% stake.

As on 31 December 2018, promoters held about 1.88 crore shares, or 30.58% equity, in NIIT Technologies. This includes about 1.44 crore shares, or 23.51% equity, held by NIIT.

NIIT Technologies is a global IT solutions organization. The company focuses on three key verticals: Banking and Financial Services, Insurance, Travel and Transportation.

On a consolidated basis, net profit of NIIT declined 1.57% to Rs 19.43 crore on 8.75% rise in net sales to Rs 227.77 crore in Q3 December 2018 over Q3 December 2017.

NIIT is a skills and talent development corporation that is building a manpower pool for global industry requirements.

Powered by Capital Market - Live News