The promoters of software training and education services provider NIIT Technologies have sold 4.354 million shares in the company for ₹1.2 billion (US$22 million), or ₹267 a share. The shares, sold by individual promoters Rajendra Pawar and Vijay Thadani through block deals on the Bombay Stock Exchange, represent about 7.3% of NIIT’s total shares. NIIT’s promoter group continues to hold a 31% interest in the company.
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The funds generated will go towards expanding NIIT University.
The Securities and Exchange Board of India defines a block deal as the “execution of large trades through a single transaction without putting either the buyer or seller in a disadvantageous position”. The trade is conducted through a separate trading window, which is kept open for 35 minutes from 9:55 to 10:30 am.
Amarchand Mangaldas partner Prashant Gupta and senior associate Monal Mukherjee advised NIIT and its promoters on the sale. AZB & Partners was the domestic adviser to Citigroup – the brokers of the deal – while Cleary Gottlieb Steen & Hamilton was Citigroup’s US counsel.
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