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Sharp gains expected for Majesco's Indian shareholders after US sale

Cash per share after transaction at Rs 852 is more than double the current price

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Majesco (India) has indicated that it will distribute the amount received by way of dividend, or buyback, which would peg the fair value of the stock at Rs 852 a share

Ram Prasad Sahu Mumbai

2 min read Last Updated : Jul 22 2020 | 1:19 AM IST

The decision of Majesco (India) to sell its US subsidiary to private equity player Thoma Bravo is likely to open up a cash bonanza for Indian shareholders.

Given the acquirer is paying $13.1 per share (Rs 970), the deal values the Nasdaq-listed Majesco (US) at $594 million (Rs 4,430 crore). The offer is at a 72 per cent premium to the closing price on the Nasdaq. Majesco (US) offers software services and solutions to insurance companies and has been valued at 4 times its FY20 sales.

Majesco (India) will get $421 million or Rs 3,154 crore for its 74 per cent stake

Topics : Majesco Shareholders

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