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PCS valuation pushes Patni brothers to open market
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PCS valuation pushes Patni brothers to open market
MUMBAI: The Patni brothers, Gajendra and Ashok Patni, have sold a 0.6 per cent stake in Patni Computer Systems on Monday and Tuesday, a possible
indication that potential buyers negotiating to buy the firm are quoting lower than the current market price.
But a source close to the brothers denied this was the case. “The stake sold is very small and no significance can be attached to it,” the person said.
Private equity player General Atlantic and the three Patni brothers — Gajendra, Ashok and Narendra — are negotiating to sell their 66 per cent stake in the country’s sixth-largest software exporter.
Both Gajendra Patni and Ashok Patni have sold 4 lakh shares each this week, representing a 0.3 per cent stake and garnering a total of Rs 39 crore.
Sources said the strategic investors believed to be interested in the company — L&T Infotech and Japanese player NTT — wanted to buy at a price between Rs 400 and Rs 425 per share.
Shares of PCS slipped 3.47 per cent to close at Rs 460.10 on BSE on Thursday. There was a high possibility of the deal being clinched below the current market price, according to a source. “This is the reason why they are selling in the market,” the source said.
The third brother, Narendra Kumar Patni, who was managing the company till early 2008, has not sold any shares. The Patni brothers could not be reached for comment.
All the three Patni brothers hold approximately 16 per cent each in the company while General Atlantic holds 18 per cent. The youngest of the Patni brothers, Ashok Kumar Patni, sold 2 lakh shares on Monday at a price of Rs 495 and another 2 lakh on Tuesday at a price of Rs 478 per share.
Amit and Arihant, sons of Gajendra Kumar Patni, sold 1 lakh shares on Tuesday at a price of Rs 478.50. And, on Monday, Gajendra’s grandchildren, Aakruti and Ayushi, sold 1 lakh shares at Rs 495 each.
n 2007, both Gajendra Patni and Ashok Patni were keen on selling their holdings in Patni along with General Atlantic, but the sale fell through because NK Patni did not want to exit the company.
Source:
http://economictimes.indiatimes.com/infotech/software/PCS-valuation-pushes-Patni
indication that potential buyers negotiating to buy the firm are quoting lower than the current market price.
But a source close to the brothers denied this was the case. “The stake sold is very small and no significance can be attached to it,” the person said.
Private equity player General Atlantic and the three Patni brothers — Gajendra, Ashok and Narendra — are negotiating to sell their 66 per cent stake in the country’s sixth-largest software exporter.
Both Gajendra Patni and Ashok Patni have sold 4 lakh shares each this week, representing a 0.3 per cent stake and garnering a total of Rs 39 crore.
Sources said the strategic investors believed to be interested in the company — L&T Infotech and Japanese player NTT — wanted to buy at a price between Rs 400 and Rs 425 per share.
Shares of PCS slipped 3.47 per cent to close at Rs 460.10 on BSE on Thursday. There was a high possibility of the deal being clinched below the current market price, according to a source. “This is the reason why they are selling in the market,” the source said.
The third brother, Narendra Kumar Patni, who was managing the company till early 2008, has not sold any shares. The Patni brothers could not be reached for comment.
All the three Patni brothers hold approximately 16 per cent each in the company while General Atlantic holds 18 per cent. The youngest of the Patni brothers, Ashok Kumar Patni, sold 2 lakh shares on Monday at a price of Rs 495 and another 2 lakh on Tuesday at a price of Rs 478 per share.
Amit and Arihant, sons of Gajendra Kumar Patni, sold 1 lakh shares on Tuesday at a price of Rs 478.50. And, on Monday, Gajendra’s grandchildren, Aakruti and Ayushi, sold 1 lakh shares at Rs 495 each.
n 2007, both Gajendra Patni and Ashok Patni were keen on selling their holdings in Patni along with General Atlantic, but the sale fell through because NK Patni did not want to exit the company.
Source:
http://economictimes.indiatimes.com/infotech/software/PCS-valuation-pushes-Patni
