Nearly 21,000 shareholders of Mumbai-based Majesco Ltd can expect a windfall with private equity firm Thoma Bravo acquiring the US arm of the insurance software company for $594 million. Majesco owns 74 per cent stake in its US subsidiary.
The board of Majesco Ltd on Tuesday said the proceeds from the sale will be distributed to the shareholders of the company. This would amount to a total payout of ₹3,154 crore or $420.66 million. Public shareholding, which includes financial institutions, accounts for 61.77 per cent of the total equity.
There are 19,937 retail investors holding a total stake of 18.83 per cent. Following the deal announcement, Majesco Ltd’s shares hit the upper circuit closing at ₹401.15 on the BSE.
“The gross value to be received by the company for its stake in the US subsidiary is $420.66 million, compared to the total market capitalisation of the company in India of $141 million, a premium of 198.34 per cent over the market capitalisation. The total investments by the company in the US subsidiary are $68.67 million, to date,” Majesco said in an exchange filing. Nearly 99 per cent of the revenue earned was from the US subsidiary.