BPEA (Baring Private Equity Asia), the promoter of Coforge, said the mid-cap IT services company's revenues and profits have doubled since they acquired stake in the company back in 2019.
Earlier today, BPEA sold its 25.4 percent stake in Coforge through a block deal. The stock closed at Rs 5,375 on the NSE, up 9.4 percent.
Jean Salata, head of BPEA told CNBC-TV18 that the company’s objective for investing in Coforge has been achieved and it is a good time to exit the business. “Our business model is of one where we invest in companies, we help them to grow, reposition and transform. Then hopefully the next owners of the business can continue to grow further and if you look at the way the stock is performing today, it's up over six percent (intraday). The future for the business is extremely bright,” said Salata.
“Everyone who has been tracking this industry knows that this sector is performing well, as a result of the amount spent on technology and services and with the AI coming in there is a view that even more funds and more growth opportunities for the business," added Salata.
Salata also said that India will benefit geopolitically from the international capital flows into the market as it is one of the preferred destinations globally.
BPEA acquired 70 percent stake in Coforge back in 2019 at a price of Rs 1,394 per share. They have exited the stake at around Rs 4,700 per share, generating a return of almost 240 percent.
Hari Gopalakrishnan, a partner at BPEA Equity India, said that more than 50 investors participated in the block deal and the order book was subscribed over three times.
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