Blue Star Infotech crashes 20% on sale of IT biz to Infogain

Shares of Blue Star Infotech slumped 20 per cent today after the company said Infogain Inc, a ChrysCapital portfolio company, will acquire its IT business for Rs 180.80 crore.
The stock nosedived 19.97 per cent to Rs 231.10 on BSE.
At NSE, shares of the company dipped 19.98 per cent to Rs 231.35.
The combined entity will have a revenue of over USD 150 million, close to 4,000 employees and multiple global delivery centres, Blue Star Infotech Limited (BSIL) had said in a BSE filing yesterday.
It will provide customers with digital transformation platform with capabilities in cloud, mobility, SAP, analytics, product engineering and test automation from locations in the US, the UK, Middle East, Singapore, Malaysia and India.

"The aggregate consideration for the IT business of BSIL (Rs 81.70 crore) and its subsidiaries in USA (Rs 36.50 crore), UK (Rs 21.80 crore) and Singapore (Rs 40.80 crore) under the transaction will be Rs 180.80 crore, payable upon completion of the sale," it said.
In a separate filing, BSIL said the Board has decided to purchase the entire business of the company's wholly-owned subsidiary Blue Star Infotech Business Intelligence and Analytics by October 31 for Rs 6.5 crore.