PE firm Apax to buy 23% stake in Zensar Technologies

UK-based private equity firm Apax Partners is all set to acquire a 23.3 percent stake in Zensar Technologies.Sources have told that firm will buy the stake from Electra Partners, at a price of Rs 826 per share.The total deal size is pegged at Rs 859 crore.Below is the verbatim transcript of Harsh Goenka and Shashank Singh's interview with CNBC-TV18's Kritika Saxena.Q: What are your first thoughts about the deal?Goenka: We are absolutely delighted with a partnership with Apax who is now going to have a significant shareholding of 23 percent in Zensar. What Apax can bring is a lot of knowledge that they have in the IT space. They have had recent acquisitions which they have sold recently at very good prices. They have a lot of international clients whom they can bring to us as potential clients. More than that Apax is a great partner with a great legacy. So, we are looking forward to working with them.Q: As far as the contours are concerned it is an exchange of little over 23 percent. So, would that mean that Apax would come on to the board of directors of Zensar as well?Singh: It is 23.2 percent to be exact. We do not have a board seat currently. We will be requesting the company and the board to if they so chose and saw fit to appoint us to the board.Q: I believe that you will choose fit?Goenka: It depends on the board. I am just a single member on that board.Q: Zensar has been expanding across the board and in the midcap IT space we have seen a significant leg up but going forward how will you utilise the funds that are coming onboard, will that largely go directly to Electra partners or will there be some kind of equity coming in or some kind of capital coming in?Goenka: All the funds go to Electra.Q: Would there be any kind of fresh issue that would be required as a result of this?Goenka: No. The company has enough resources and leverage to raise resources whenever it needs.Q: Is there an option in that case for Apax to hike stake at a later date?Singh: At 23 percent we do not intend to increase our stake any further.