IT stalwarts have been talking about consolidation in the its pace since four years but never before has it felt so real. Barings PE recently bought a majority stake in Hexaware, the services business of Polaris reportedly up for sale and so is MphasiS reportedly on the block. Sources now say that the Godrej group is exploring options to exit mid cap IT player Geometric.
“With several mid cap IT companies selling out, Godrej Group is exploring options to see if it can find buyers for its stake in the company;” said a source familiar with the development, who did not wish to be named. “Investment banks have been appointed and have been asked to find prospective suitors. So far, conversations have begun with PE players and foreign IT companies but can’t be certain on the buyers yet since its initial days;” the source added. Also read: Godrej to engage 1 mn people to shapre India by 2022
Another source familiar with the group’s expansion plans said: “The move is in-line with the group’s plans to move out of non-core assets. If it manages to find a buyer, the group will continue to use geometric software’s IT solutions for its group software deployment.”
Currently Godrej Group holds 29.8 percent stake in Geometric via its holding companies, Godrej Boyce Manufacturing Co Ltd and Godrej Industries. The total promoter shareholding stands at 37.14 percent. The remaining promoter shareholding is held by Manu Parpia, who is also the MD & CEO of the company, and his family. Rakesh Jhunjhunwala also holds 19.4 percent stake in the company.
When contacted, Adi Godrej responded to CNBC-TV18’s queries and said “We do not comment on speculative reports.”
Geometric, specializes in automotive, engineering and hi tech software solutions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
