Hulst BV, promoter of Coforge Ltd (formerly NIIT Technologies), is looking to offload its entire 26.63 percent stake in the mid-sized IT firm via a block deal, sources told CNBC Awaaz.

The floor price has been fixed at Rs 4,550 per share, which is a 7.4 percent discount to the current market price of Rs 4,901.95.

The Netherlands-registered Hulst BV is owned and controlled by funds affiliated with BPEA (Baring Private Equity Asia).

Hulst BV will sell 1.62 crore shares, taking the deal size to around Rs 7,400 crores, sources added.

Earlier in May, Hulst BV divested a 3.5 percent stake in Coforge for Rs 887 crore through an open market transaction. The shares were disposed of at an average price of Rs 4,125.44 apiece.

Also Read: Coforge posts healthy Q1 earnings; brokerages upbeat

In February this year, Hulst BV offloaded a 9.8 percent stake in the IT company.

The private equity firm had acquired a stake in the mid-tier IT company in 2019. It held a 63.99 percent stake in Coforge at the end of the March 2021 quarter, which was brought down subsequently via stake sales.

At the end of June 2023, Hulst BV held a 26.63 percent stake in the firm, as per BSE data.

Coforge’s revenue increased 2.4 percent sequentially for the April-June quarter to $271.8 million. Coforge saw its revenue grow 2.7 percent in constant currency terms, lower than the expected 3.5 percent sequential growth.

In rupee terms, the company reported a revenue of Rs 2,221 crore in the June quarter against Rs 2,170 crore in the previous quarter, Coforge said in a stock exchange filing on July 20.

The mid-cap IT services player, however, reported a 43.9 percent jump in its net profit to Rs 165.3 crore, as the company had to provide for an exceptional expense of Rs 52.3 crore in the March quarter.

Shares of the company ended 1.18 percent lower at Rs 4,901.95 on the BSE on August 23. The shares are up 24 percent this year till date.

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