Indian IT firms, especially in the mid-tier segment, have seen a rise of private equity firms placing stakes on them. While faster technology at mid-size IT services companies have attracted PE firms such as Blackstone, Carlyle, ChrysCap, Bain Capital, The Baring Asia and others to invest in the sector; PE-backed companies have seen faster growth at a time when their large listed peers slowed down due to uncertain market.
Every shareholder is happy when a share buyback is announced. Some even pressure companies to repurchase shares because they see no value in remaining shareholders of the company. And sometimes it is the management that wants to be free of shareholders. But to what end?
While it may not be one of those typical posh offices in Manhattan’s Park Avenue, the office of Wyde.com is nonetheless upscale for a small technology business. At building No. 460, Rajesh Makhija, CEO of the $50-million software product SMB, lays out Wyde’s plans for reinventing legacy solutions for the mobile era.
Private equity player Blackstone India announced that it will buy Bengaluru-based Mphasis for ₹7,100 crore, making it the largest deal in India and bringing to a close speculation over the future of Mphasis.
The PE major will acquire Hewlett-Packard’s 60.5 per cent stake in the company at ₹430 per share, which will trigger an open offer for acquiring 26 per cent from Mphasis’ other shareholders. The open offer is priced at ₹457.50 per share.
HP’s decision to split its business could further impact Mphasis outsourcing business and lock horns with the technology giant in some business areas.
Earlier this year, MphasiS, the bangalore based software services player, unveiled its new logo with great fanfare. The logo had a new visual appeal, with the subtext ‘Unleash the Next’, in place of ‘An HP Company’ earlier. Speaking on the occasion, Ganesh Ayyar, the affable CEO of MphasiS, said the bigger purpose behind the rebranding exercise was to convey the company’s focus on ‘new age solutions’ in the digital marketplace and cloud. On a prouder note, he announced that MphasiS had achieved the billion-dollar mark in revenues, setting the stage for its next phase of growth.