2 Patni siblings may sell 20% for Rs 1,750 cr

Eldest brother may buy part of the shares; private equity to pick up rest.

Two Patni brothers "" Ashok and Gajendra "" who together own about 29 per cent stake in Patni Computers, the country's sixth largest IT services company, are close to selling 20 per cent of their holdings for around Rs 1,750 crore.

While a part of the stake is expected to be bought by Narendra Patni, the eldest brother and chairman & chief executive officer of the company, a couple of private equity funds will buy the balance, sources close to the developments said.

The deal values the company at Rs 8,750 crore and is likely to take place at Rs 630 a share, which is an over 12 per cent premium to the stock's closing price of Rs 561.30 on the Bombay Stock Exchange today. Many private equity funds such as Apax Partners and Blackstone are in the race to buy the stake on offer.

Ashok and Gajendra Patni will each retain a 4.5 per cent stake in the company.

When contacted, Narendra Patni, who holds a 14.69 per cent stake in the company, did not want to comment on the specifics of the deal as no firm offer has been made.

He, however, said he is open to buying a part of his brothers' stakes provided the price is correct. "I have built the company from scratch and would like the shares to find a good home when they are on offer," he said. Ashok and Gajendra Patni hold 14.87 per cent and 14.42 per cent, respectively, in the company.

Patni also said no discussions are being held with IBM or any other IT services company for the stake sale. General Atlantic Partners, which holds a 16.38 per cent stake in the company, has also decided not to exit, he added. He did not attach much importance to the proposed stake sale by his brothers as it is a continuing process.

Pointing out that his brothers have already sold over 6 million shares since the company went public in 2004, he said, "business will go on as usual even if some shares change hands."