BPEA EQT exits Coforge via US$924m 2023 NSE block deal

Transaction snapshot

BPEA Private Equity Fund VII (BPEA EQT) has sold its remaining stake in Indian IT consultancy Coforge through a block deal, according to an EQT press release. The sale covered 26.6 percent of Coforge and was valued at US$124 million, which EQT also described as equivalent to SEK 10.1 billion. Separately, Indian exchange bulk deal data and PTI reported that Hulst BV, an affiliate of BPEA EQT, sold 26.63 percent for about Rs 7,683 crore. The exit marks the conclusion of BPEA EQT’s investment, which began in 2019. Coforge is listed on the National Stock Exchange (NSE).

How the block deal was executed

Bulk deal disclosures cited by PTI show Hulst BV offloaded 1,62,71,260 shares in Coforge, representing 26.63 percent of the company. The shares were sold at an average price of Rs 4,722.15 per share, taking the aggregate transaction value to Rs 7,683.53 crore. Another market report in the provided material stated BPEA divested 16.27 million shares at the same price through multiple bulk transactions. The reported selling price implied a discount of about 4 percent to Coforge’s previous close of Rs 4,913.1. The sale was executed through a series of deals involving multiple investors rather than a single counterparty.

Who bought the shares

The buyer list reflected broad institutional participation. Reports named SBI Mutual Fund, Aditya Birla Mutual Fund, and Kotak Mahindra Group among participants in the block deals. PTI also listed HDFC Mutual Fund, Aditya Birla Sun Life MF, Kotak Mahindra MF, SBI MF, Morgan Stanley Asia Singapore, ICICI Prudential Life Insurance Company, SmallCap World Fund Inc, and Societe Generale as buyers. The presence of multiple mutual funds and global institutions suggested strong demand for the offered block at the deal price. The transaction was widely tracked because it involved a large, single-day change in shareholding.

Coforge share price reaction

Coforge’s stock saw a sharp move on the day of the bulk transactions. One report in the provided text said the shares rose by roughly 10 percent to around Rs 5,391. PTI reported the stock closed up 9.40 percent at Rs 5,375 on the NSE. The difference reflects intraday movement versus the closing price. Either way, the immediate market reaction was positive despite the block being priced at a discount to the prior close.

From 2019 control transaction to full exit

BPEA EQT bought into Coforge in 2019, initially acquiring a 70.1 percent stake alongside EQT and other co-investors, according to EQT. The final sell-down of roughly 26.6 percent ends a four-year investment period referenced in the material. Another report added that the sale delivered an approximate return of nearly 240 percent, based on an acquisition price of Rs 1,394 per share in 2019 versus the bulk sale price of Rs 4,722.15 per share. Coforge was earlier known as NIIT Technologies.

Business performance under BPEA EQT ownership

EQT stated that under BPEA EQT’s ownership, Coforge doubled both revenue and EBITDA. The company crossed a major scale milestone in April 2023, when revenue exceeded US$1.0 billion. While the article material does not provide the starting revenue and EBITDA figures, it attributes the growth to the period of BPEA EQT’s tenure as a major shareholder. Coforge is described as a technology services provider focused on application development and maintenance, infrastructure management services, and business process outsourcing.

Coforge’s operating footprint and client verticals

Coforge’s client base is described as being primarily in financial services, insurance, and travel. Another section of the provided text also mentions banking, travel, and transportation as key sectors for the company’s digital services work. EQT said Coforge has a presence across 21 countries, with 26 delivery centers across nine countries. These details point to a global delivery model and exposure to multiple end markets, with financial services and travel highlighted consistently across reports.

Promoterless status after the sale

One report in the provided material described the transaction as a notable shift for the company because it became fully owned by public investors, with no identifiable promoter. That framing matters in the Indian listed market context, where many companies have a controlling promoter group. With BPEA EQT selling down its remaining stake, the shareholder base becomes more widely distributed among institutions and other public investors, as reflected by the buyer list.

Key numbers at a glance

Market impact and why the exit matters

The block trade was large enough to reset near-term trading dynamics in Coforge, since a sizeable stake changed hands in one session. The discount to the previous close, combined with a strong same-day price rise, indicated that buyers were willing to absorb supply even at scale. The exit also removes a long-standing private equity shareholder, which can reduce overhang concerns for some investors watching for eventual sell-downs. At the same time, the shift to a promoterless structure may influence how investors assess governance and shareholder alignment, though the provided material does not cite any changes in management or board composition.

Analysis: what the deal signals for Indian IT services

The transaction highlights continued institutional appetite for scaled Indian IT services names, especially when offered through a widely distributed block with multiple buyers. It also shows how private equity-backed control investments can transition into public ownership once a company reaches a larger revenue base, such as Coforge crossing US$1.0 billion in April 2023. The reported doubling of revenue and EBITDA during the holding period is central to EQT’s exit narrative, even though the underlying base figures are not disclosed in the material. For Coforge, the post-exit share register becomes more diversified, with Indian mutual funds and global investors both participating.

Conclusion

BPEA EQT’s sale of its remaining roughly 26.6 percent stake in Coforge for US$124 million closes a multi-year investment that began with a 70.1 percent acquisition in 2019. The deal was executed through NSE bulk transactions at around Rs 4,722 per share and was followed by a sharp move in the stock price on the day. Coforge’s business scale-up, including revenue exceeding US$1.0 billion in April 2023, was cited as a key milestone achieved during BPEA EQT’s tenure. With the private equity shareholder exiting, the company moves into a phase where public and institutional investors collectively hold the ownership.