Fidelity Management & Research Company, an asset management firm, has reduced its total ownership stake in BPO firm EXL Service Holdings, from 15 per cent to 6.7 per cent.
“Fidelity is the beneficial owner of 19,55,234 shares or 6.778 per cent of the Common Stock outstanding of ExlService Holdings Inc”, said a Securities and Exchange Commission filing on EXL’s official website.
Fidelity has been the largest shareholder in EXL, but has reduced its stake in all three due to the redemptions happening in the mutual fund industry.
“New investors have taken up the position of Fidelity and will accumulate their position in 15-20 days,” said Rohit Kapoor, president and CEO, EXL Service Holdings.
Fidelity has also invested in other BPO majors Genpact and WNS though its stake is less than 15 per cent. Sources say the investment firm was in discussions with both Genpact and WNS, and might have reduced its stake in these two also. This could not be independently confirmed with the firms.
Analysts say that four to five large funds will buy half a million to one million shares each in the company and take two-three per cent stake.
Industry observers say because the BPO Index fell by more than 35 per cent in the last six months, the valuations of these BPOs are down and they will have to bargain a lot with the new investors.
