Mphasis Shares Slump Amidst Rs 7,000 Crore Block Deal

About 3.35 crore shares of Mphasis were sold in a Rs 7,000 crore block deal on the NSE, leading to a 3% decline in its stock price. Blackstone's affiliate is likely the seller. Mphasis reported a slight increase in revenue but a net profit decline in the March quarter of FY24.

In a major transaction on Monday, approximately 3.35 crore shares of Mphasis were sold through open market deals on the National Stock Exchange (NSE), amounting to over Rs 7,000 crore.

This significant share sale led to a slump of 4.82 percent in the stock's intraday trading, hitting Rs 2,352.60 before recovering slightly to close at Rs 2,398, marking a 3 percent decline from its previous close.

Speculations point to BCP Topco, a Blackstone affiliate, as the probable seller in this large block deal. Pivotal to note, this sale could trigger a 180-day lock-in period before any further block deals by Blackstone-backed entities. Meanwhile, Mphasis recorded a marginal revenue increase but saw a dip in its consolidated net profit for FY24's March quarter.