Mphasis shares pare early gains; up nearly 1% at close

Shares of IT firm Mphasis pared most of its early gains in an extremely weak broader market, rising nearly one per cent, a day after the US-listed Blackstone said it will invest up to Rs 7,071 crore to acquire a majority stake in the IT services exporter from Hewlett Packard.
After rising 4.26 per cent to Rs 473.85 in intra-day trade, shares of the company later gave up most of its gains and finally ended at Rs 456, up 0.34 per cent on BSE.
At NSE, the stock gained 0.71 per cent to end at Rs 457.95.
In the broader market, the BSE benchmark Sensex fell sharply by 516.06 points or 2.03 per cent to end at 24,883.59.

Blackstone India will acquire HP's 60.5 per cent stake in the company at Rs 430 per share, which will trigger an open offer for acquiring 26 per cent from other shareholders of Mphasis, for which it has announced a price of Rs 457.50 a share.
Depending on the outcome of the open offer, the US-based asset manager will pay anything between Rs 5,466 crore and Rs 7,071 crore for taking control of the IT company.
Announcement of the transaction after signing of a definitive agreement between the two parties ended speculation over the suitor for the IT exporter, which was put on the block by Hewlett Packard (HP) Enterprise.