 "Blue Star Infotech dips 20% on sale plan of IT business")
Shares of Blue Star Infotech (BSIL) has locked in lower circuit of 20% at Rs 231 on the BSE after the company announced that its board has decided to sell the entire information technology (IT) business of the company on a slump sale basis to Infogain.
“IT business of the company is to be acquired by Infogain Inc., a ChrysCapital portfolio company. The aggregate consideration for the IT business of BSIL and its subsidiaries in USA, UK and Singapore under the transaction will be Rs 180.80 crore, payable upon completion of the sale,” BSIL said in a release.
In addition, BSIL would retain a real estate undertaking, a certain amount of cash and tax receivables. The fair value of these net assets to be retained by BSIL is expected to be around Rs 96.7 crore. The sale transaction is subject to the approval of shareholders of BSIL, it added.
The board has also approved the amalgamation of the company and its wholly owned subsidiary Blue Star Infotech Business Intelligence and Analytics Private Limited with Blue Star (BSL).
The BSIL shareholders will get 7 equity shares of Rs 2 each of BSL for every 10 equity shares of Rs 10 held by the an equity shareholder in the company, it added.
At 09:48 am, a combined 23,761 shares of BSIL changed hands and there were pending sell orders for 336,370 shares on the BSE and NSE.
Shares of Blue Star were up 3.3% at Rs 343 after hitting high of Rs 348 on the BSE in intra-day trade.
“IT business of the company is to be acquired by Infogain Inc., a ChrysCapital portfolio company. The aggregate consideration for the IT business of BSIL and its subsidiaries in USA, UK and Singapore under the transaction will be Rs 180.80 crore, payable upon completion of the sale,” BSIL said in a release.
In addition, BSIL would retain a real estate undertaking, a certain amount of cash and tax receivables. The fair value of these net assets to be retained by BSIL is expected to be around Rs 96.7 crore. The sale transaction is subject to the approval of shareholders of BSIL, it added.
The board has also approved the amalgamation of the company and its wholly owned subsidiary Blue Star Infotech Business Intelligence and Analytics Private Limited with Blue Star (BSL).
The BSIL shareholders will get 7 equity shares of Rs 2 each of BSL for every 10 equity shares of Rs 10 held by the an equity shareholder in the company, it added.
At 09:48 am, a combined 23,761 shares of BSIL changed hands and there were pending sell orders for 336,370 shares on the BSE and NSE.
Shares of Blue Star were up 3.3% at Rs 343 after hitting high of Rs 348 on the BSE in intra-day trade.