Baring Private Equity, the premier private equity firm in Asia and promoter of Coforge, sold a significant 9.8% stake in the software company on the open market on Monday for Rs 2,430 crore.
As of the end of December, the private equity firm had a 40% stake in Coforge through its affiliate Hulst B.V.
In a bulk transaction on the National Stock Exchange, Hulst B.V. sold 60,000,000 shares in Coforge for Rs 4,050 each. This represents a 6.5% decrease from Friday’s closing price. On Monday, the stock closed nearly 7% lower on the NSE, at Rs 4,032.25.
Institutional investors from both inside and outside the United States bought shares in Coforge on Monday.
For 3,90,000 Coforge shares, the Kuwait Investment Authority paid Rs 4,049 per share.
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Nomura India Investment Fund and Mother Fund boosted their positions in Coforge through the purchase of 6,10,083 shares at Rs 4,050 per share.
Aditya Birla Sun Life MF increased its holdings in Coforge by purchasing 3,46,076 shares at Rs 4,050 each. At the end of December, the mutual fund held a 1.92 percent interest in the software company.
As of the end of December, mutual funds held roughly 20% of Coforge’s stock. In addition to Aditya Birla MF, UTI MF, DSP MF, and Axis MF also hold shares in the mid-cap IT company. The largest life insurer in India holds a 4.79 percent interest in Coforge.
Over the past two to three years, the private equity group has been selling its holdings in the company in tranches. Baring Private Equity had acquired control. Previously, it held a 70% share of the business.