Blue Star Infotech plunges 20% as co sells IT biz to Infogain for Rs 181 crore

NEW DELHI: Shares of Blue Star Infotech (BSIL) closed 20 per cent lower at Rs 231.10 on Wednesday a day after the company announced that its IT business will be acquired by Infogain, a ChrysCapital portfolio company, for Rs 180.80 crore.

After hiving off the IT business, the subsidiary of white goods company Blue Star will be left only with the real estate business, whose assets are valued at Rs 96.70 crore. The company would then be merged with Blue Star itself after getting court’s approval for the scheme of amalgamation.

Shareholders of Blue Star Infotech would get shares of parent company Blue Star after the merger.

"The shareholders will get shares of the parent company, BlueStar, once the transaction is completed," Sunil Bhatia, CEO and MD of BSIL told ET Now. "We have sold our IT business to create a strong mid-tier company," he said.

The IT business of Blue Star Infotech and Infogain would make an entity, which will have revenue of over $150 million, close to 4,000 employees and multiple global delivery centres, BSIL said in a BSE filing.

"The aggregate consideration for the IT business of BSIL (Rs 81.70 crore) and its subsidiaries in the US (Rs 36.50 crore), UK (Rs 21.80 crore) and Singapore (Rs 40.80 crore) under the transaction will be Rs 180.80 crore, payable upon completion of the sale," the company said in a filing to BSE.