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Shares of Mphasis surged even as Sensex ended up by only one% and the sectoral index, S&P BSE IT closed down nearly 0.2%.
While some media reports claimed that Mumbai-based peer Tech Mahindra is in the fray for buying a majority stake in the Bangalore-based company, Mphasis said it is unaware of any such development.
"The company is unaware of any information in connection with the news published and hence cannot comment on the matter," Mphasis said.
To an independent email query, a company spokesperson said, "as always, Mphasis does not respond to rumors and speculations."
Business Standard had earlier this month reported that with a recovery in the stock market, HP has revived plans to sell its stake in Mphasis and had given UBS the job of finding a suitor. Infotech companies and private equity players have shown interest in buying Hewlett-Packard's stake in Mphasis, sources had said. Prominent among these are Japanese technology companies NEC and Fujitsu.
Mphasis declined to comment on a specific query, while Shari McCullough, HP's director for analyst and public relations for the Asia-Pacific and Japan said, "H-P does not comment on rumour or speculation". A UBS spokesperson also declined to comment.
Amid these rumuors, shares of Mphasis have risen nearly eight% since the beginning of the current financial year in April 2014.
HP is not only Mphasis' promoter, but also its largest client, contributing to nearly 40% of its revenue. Mphasis' business from HP has been declining for several quarters amid speculation of the stake sale.
