Jerry Rao sells 18lakh Mphasis shares for Rs38cr

Jerry Rao, chairman & managing director of MphasiS, who holds 64 lakh shares (3.97% of the total stock holding) of the firm, has sold 18.75 lakh shares in response to the open offer made by Electronic Data Systems Corporation (EDS), earning a little more than Rs 38 crore in the process.

TH Holdings along with EDS had made an open offer to acquire 52% stake in MphasiS at Rs 204.50 per share in a total bid amounting to Rs 1,672 crore ($380 million).

According to a statement from EDS, the offer will be contingent upon EDS acquiring 83 million shares, representing approximately 52% of current shares outstanding. At current exchange rates, the total purchase price for the 83 million shares is approximately $380 million (Rs 1,672 crore). EDS expects this transaction to be completed by early third quarter in current fiscal.

After this sale, Rao will continue to hold around 45 lakh shares of MphasiS. According to industry analysts, this move can be seen as an attempt by Jerry Rao to step out of the company post. Rao has lately been more than active in non-MphasiS matters, reportedly seeking exposure in a wine-making firm.

Management team members, however, stated they intend to continue even after EDS acquires a majority stake in MphasiS.