Shares of Mphasis opened with a slight gain as market expert Sandeep Wagle predicts a positive outlook for the company, with a target price of Rs 2,800. However, recent block deals involving Mphasis have raised questions about the seller and the possibility of another deal in the near future. This comes after Blackstone, the promoter entity of Mphasis, sold a 10.6% stake through block deals, triggering a lock-in period. With 3.35 crore shares being sold in a single day, the total deal value exceeded Rs 7,000 crore, adding to speculation about the future direction of the company.
Mphasis Shares Rise Despite Block Deals and Industry Uncertainties
Shares of Mphasis Ltd., an Indian IT services company, opened with a modest gain on Monday, despite concerns raised by recent block deals involving the company's shares. Market analyst Sandeep Wagle remains optimistic about Mphasis' future, setting a target price of Rs 2,800.
Background:
Mphasis is a global IT services provider with a focus on cloud, data, and infrastructure services. The company has a strong presence in the financial services, healthcare, and communications sectors. In recent years, Mphasis has faced challenges due to industry headwinds and competition from larger rivals.
Recent Block Deals:
On Friday, Mphasis reported block deals involving 3.35 crore shares, worth over Rs 7,000 crore. The promoter entity, Blackstone, sold a 10.6% stake in the company. This transaction triggered a lock-in period, during which Blackstone cannot sell any more shares.
Market Reaction:
The block deals created uncertainty among investors, who questioned the identity of the sellers and the possibility of another deal in the near future. However, market experts believe that the sale was likely a strategic move by Blackstone to raise funds and the company's fundamentals remain strong.
Expert Outlook:
Market analyst Sandeep Wagle remains bullish on Mphasis, despite the recent block deals. He believes that the company is well-positioned to benefit from the growing demand for digital transformation services. Wagle has set a target price of Rs 2,800 for Mphasis, implying a potential upside of over 15% from current levels.
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