Apax, Bain in race for $1.4b Genpact stake

Morgan Stanley and Citigroup have been hired to run the sales process, and the incumbent management team is planning on backing the new stakeholders on their entry in the company, according to the Times of India.

The deal would value Gurgaon-based Genpact, which is listed on the New York Stock Exchange, at $3.4 billion. It is unlikely that the buyers will pay a premium on the current stock price, which closed at $15.05 last Friday. A preferred bidder or consortium may purchase the shares within 45 days via block deals on the open market.

Global private equity majors Apax and Bain are said to be on the hunt for partners, preferring to split the transaction rather than investing such a large amount alone. The Carlyle Group was also mulling an investment, but appears to no longer be interested.

GA and Oak Hill originally invested around $800 million in 2005 for 60% of Genpact, which went public in 2007. Their investment vehicle, Genpact Investment Co., reduced its stake to 41% via a secondary offering in 2010. The residual holding was estimated to be worth $1.48 billion at the time, indicating that the valuation has changed little over the past two years.

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• Topics
• Support services
• South Asia
• PIPEs
• Growth capital
• Secondaries
• India
• General Atlantic
• Bain Capital Asia
• Apax Partners Hong Kong
• The Carlyle Group