NIIT Ltd gained nearly 20 percent intraday after private equity firm Baring Private Equity Asia (BPEA) agreed to buy about 30 percent stake in mid-sized IT services firm NIIT Technologies from NIIT Ltd and other promoter entities for about Rs 2,627 crore. NIIT Tech, on the other hand, fell post the announcement.

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BPEA is looking to acquire a total 56 percent stake in NIIT Technologies for Rs 4,890 crore at a price of Rs 1,394 per share.

NIIT gained nearly 20 percent in the early morning trade to hit its day high of Rs 114.50 per share. At 10:20 am, the stock was trading 17.65 percent higher at Rs 112.30 on the BSE. Meanwhile, NIIT Tech was trading 2.76 percent lower at Rs 1,312 per share.

BPEA has signed an agreement with the company to buy 30 percent shareholding on a fully diluted basis in NIIT Technologies from NIIT Limited and other promoter entities. CNBC-TV18 first reported about the deal on February 21.

In accordance with Sebi regulations, Baring has also made an open offer to the public shareholders of NIIT Technologies for a 26 percent additional stake at the same price. If the open offer is fully accepted, the aggregate consideration will be a total of Rs 4,890 crore to acquire approximately 56 percent stake in NIIT Technologies, according to the statement.

NIIT Technologies’ promoters, which include NIIT and the families of Rajendra Pawar and Vijay Thadani, hold a total of 30.04 percent stake in the company. NIIT directly has a 23.1 percent stake. The deal is subjected to various regulatory approvals.

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First Published:Apr 8, 2019 10:17 AM IST