Baring Private Equity Asia sells 10% stake in Coforge through a block deal

Baring Private Equity Asia, the promoter of Coforge (formerly NIIT Technologies), on Monday, divested nearly 9.8 per cent stake in the IT company at an estimated value of Rs 2,430 through a block deal.

According to bulk details data available with the National Stock Exchange, Baring PE sold a total of 6 million shares at a price of Rs 4,050 apiece. 

On Monday, Business Standard had reported that Baring PE may sell part of its 40 per cent stake in Coforge via block deals. 

In April 2019, Baring PE had signed an agreement to buy about a 30 per cent stake in Coforge on a fully-diluted basis from promoter entities at a price of Rs 1,394 per share.

Formerly known as NIIT Technologies, Coforge is a global technology services and solutions provider with a focus on select verticals of Banking & Financial Services, Insurance, and travel and hospitality. The company reported 24.2 per cent growth in net profits to Rs 228.2 crore in Q3FY23 against Rs 183.7 crore in the same period a year ago.

The Noida-based IT firm plans to grow its capabilities in product engineering, digital solutions, data analytics, Artificial Intelligence/ Machine Learning, customer experience, cloud, business process solutions and digital automation to create a differentiated value proposition. The company employs around 23,000 people as of Q2 FY23. It plans to increase the net headcount by around 20 per cent or 4,500 people, in line with net revenue growth numbers.

In FY22, the company reported total revenue of $866.5 million, up 38 per cent YoY. The growth in revenue exceeded its full-year revenue growth guidance, while net profit grew 45 per cent YoY. Revenue from the BFS segment clocked 102 per cent growth during the year. The insurance vertical grew 20.2 per cent, while travel and hospitality expanded by 36 per cent during the year.