R Systems hits upper circuit on Blackstone open offer to buy majority stake

New Delhi: Shares of R Systems International hit their upper circuit limit on Thursday after the announcement of an open offer by Blackstone, followed by an optional delisting offer.

Blackstone Inc said on Thursday it will buy a 52% stake in Indian technology and analytics services company R Systems International for $359 million.

Blackstone, along with BCP Asia II Topco, will launch a conditional delisting offer of 5,71,73,476 equity shares or 48.33% stake in the company at a price of Rs 246 per share, it said in a statement.

Following the announcement, shares of R Systems International zoomed 20%, its daily circuit limit, to Rs 281.25 on Thursday. However, the scrip lost some gains to trade at Rs 278.40 at 9.55 am.

Blackstone is buying the promoters' stake for Rs 245 per share, a premium of about 4% on the previous close price of Rs 235.8 per share. The promoters will get around Rs 1,496.95 crore for their 52% stake.

The private equity market will also launch a conditional delisting offer. The transaction is expected to be completed in the coming months, subject to customary closing conditions and regulatory approvals.

Founded in 1993, R Systems International specialises in digital information technology services.

R System’s revenue for the last 12 months, as of September 30, 2022, was Rs 1,445 crore ($189 mm), registering a 36 per cent year-on-year growth.

Kotak Mahindra Capital Company is the sole manager for the offer. KPMG, Cyril Amarchand Mangaldas and Simpson Thacher & Bartlett acted as advisors to Blackstone.