Patni shares rise after bid reports

Shares in Patni Computer rose as much as 3.2% on Friday, following media reports that leading bids for a majority stake in the firm ranged from Rs530 a share to Rs600 a share.

The Economic Times said on Friday that private equity firms Carlyle, Advent International and Akansa Capital had partnered to bid Rs600 a share, while the Business Standard said a consortium of Apax Partners and iGate was the lead bidder at Rs525 to Rs530 a share.

Both reports did not name their sources Patni, which has a market value of about $1.4 billion, declined comment. Carlyle and Apax were not immediately available for comment.

Shares in Patni were up 1.25% at 486.50 rupees at 0432 GMT on the Bombay Stock Exchange, outperforming the main index, which was down by about 0.1%.

Talks to sell a stake in the software services exporter have been going on for about two years, but Patni has failed to seal a deal due to valuation gaps with potential buyers, sources previously said.

The founding Patni brothers are looking to sell their 46% stake while private equity firm General Atlantic plans to sell its roughly 17% holding, the sources have said.

Patni, a mid-sized Indian IT services firm also listed in New York, provides technology outsourcing services to industries such as insurance, telecom, utilities and retail.

Small and mid-cap Indian IT companies have been grappling with tepid demand, high attrition rates and a rise in expenses, resulting in reduced profitability for some.