Mumbai: IT firm Patni Computer Systems on Monday dropped nearly 4% in the early trade on Bombay Stock Exchange (BSE), after the Nasdaq-listed iGate called off announcement of its “significant corporate development”, where it was expected to notify its deal for buying 63% stake in the company.
The iGate-Apax consortium, which is tipped to be the front-runner for acquisition of a majority stake in India’s sixth largest IT firm Patni, was expected to make the acquisition announcement today.
Reacting to the cancellation of the announcement, shares of Patni Computer Systems started the day on a subdued note and plunged by 3.67% to an early low of Rs459.15 a piece on Bombay Stock Exchange.
The scrip witnessed a similar downslide on the National Stock Exchange (NSE) and shed 5.3% to trade at Rs451.20 in the morning trade.
Patni brothers -- - Narendra Patni, Ashok Patni and Gajendra Patni -- were in talks to sell their 46% stake, while private equity firm General Atlantic was selling its roughly 17% holding in the software services exporter.
Sources in-the-know said the terms of the estimated $1 billion deal are still being worked out.
Meanwhile, the 30-share benchmark Sensex was quoting firm at 20,605.66, up 96.57 points at 1237 hours.