Talks for acquisition of ICICI Bank Ltd’s controlling 30 per cent stake in 3i Infotech Ltd have veered to a likely price range of Rs 110-120 a share, sources told NewsWire18.
Analysts said prospects for a price near Rs 130 per 3i Infotech share seem distant given the uncertainty over the visibility of business from current promoter ICICI Bank. 3i Infotech gets 8 per cent of revenue from ICICI Bank.
A fund manager with a portfolio management service company said: “Such deals normally have an assured business component. The business that ICICI will guarantee will determine the bidder’s price.”
Reports state a clutch of private equity firms such as Carlyle Group, Apax Partners, and Kohlberg, Kravis & Roberts are in the fray to acquire ICICI’s stake in 3i Infotech, which now stands at 27 per cent after the bank sold 5.7 million shares in early October.
3i Infotech’s CFO Amar Chintopanth said he was unaware of any such development. India’s largest private sector bank and its unit ICICI Strategic Investments Fund together held 29.97 per cent or 50.47 million shares in 3i Infotech as of September-end.The stock has been in the limelight this month, with high volumes but analysts attribute that to year-end net asset value adjustments by mutual funds, which hold a considerable amount of the company’s equity.