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Mphasis on detail: How Blackstone brought the spunk back in Indian IT firm

Did Blackstone find a missing formula, or had Mphasis's former owner missed targets?

Amit Dixit, Senior Managing and Head of Private Equity, Blackstone India
Amit Dixit, Senior Managing and Head of Private Equity, Blackstone India

Three years ago when private equity behemoth Blackstone Group acquired Information Technology  services firm Mphasis, it got attention because it was the largest investment it had made in the country, at a sticker price of $1 billion. Since then, the share price has consistently stayed in a range that is double of the price it was bought, even reaching a high of Rs 1,250 during summer last year. Revenue growth has been the highest ever at 22 per cent, operating margins improved by over 3 per cent, and the company’s cash flow of $138 million has been at the top compared to ...