Sharp gains expected for Majesco's Indian shareholders after US sale

Cash per share after transaction at Rs 852 is more than double the current price

The decision of Majesco (India) to sell its US subsidiary to private equity player Thoma Bravo is likely to open up a cash bonanza for Indian shareholders.

Given the acquirer is paying $13.1 per share (Rs 970), the deal values the Nasdaq-listed Majesco (US) at $594 million (Rs 4,430 crore). The offer is at a 72 per cent premium to the closing price on the Nasdaq. Majesco (US) offers software services and solutions to insurance companies and has been valued at 4 times its FY20 sales.

Majesco (India) will get $421 million or Rs 3,154 crore for its 74 per cent stake