Carlyle, TPG eye NIIT Tech pie

New Delhi-based IT company NIIT Technologies is learned to be in preliminary discussions with private equity players Carlyle and TPG to sell a majority stake. Industry sources said a strategic investor is also believed to be interested in the transaction.

Promoters currently hold 40% stake in NIIT Technologies and sources said they may sell anywhere between 25% and 40% in the company. This would trigger an open offer, where investors can buy an additional 20% in the company.

The company had earlier said that it is open to a stake sale to a financial or a strategic investor. “The company will dilute 25% out of the nearly 40% stake held by promoters to a strategic investor and this has been our position. This will naturally lead to an open offer.

With the company having a market capitalisation of Rs 1,309 crore, a 60% stake in the company will cost around Rs 1,000 crore, depending on the premium that investors are willing to pay the promoters.

Read more in The Economic Times article.

Citi, 3 others lead race for Sharekhan stake

Citigroup’s private equity arm Citigroup Venture Capital International, Baring Private Equity, TPG and 3i are the front-runners to acquire an equity stake in Sharekhan, the retail brokerage arm of the Mumbai-based SSKI group.

Some foreign and domestic banks have also expressed their interest in the brokerage firm, while existing private equity investors General Atlantic, Intel Capital and a group of funds advised by HSBC Pvt Equity India, which own about 48 per cent shares in Sharekhan, will look to sell either fully or partially in the current equity sale.

Intel, which owns 5 per cent, and HSBC-advised funds, which own close to 12.5 per cent, have been investors in Sharekhan for long. The other major shareholders are the Morakhias’ (promoters) with 37 per cent stake, while 300 employees together hold another 15 per cent.However, none of the employees would sell their stakes in the current round.

Sharekhan is valued at around Rs.800-850 crore. It is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities.

Read more in The Business Standard article.