Bain Capital, investors sell $620 million Genpact stake

BENGALURU: Bain Capital and some other investors are selling their remaining stake in Genpact, about seven years after the private equity company acquired a 30% stake in the business process management company. The stake is worth over $620 million going by Genpact’s closing share price of $40.40 on Thursday.

Bermuda-headquartered Genpact told the US Securities and Exchange Commission on Thursday night that Bain Capital and its co-investors are selling 15.4 million shares.

“After giving effect to this offering, Bain Capital and its co-investors willnot beneficially own any of our shares, and as a result, our shareholder agreement with Bain Capital and its co-investors will terminate automatically,” Genpact said in its filing.

Bain Capital was allowed to nominate directors to Genpact’s board as long as it continued to hold above 7.5% of stake in Genpact.

“Bain Capital and its co-investors will no longer be entitled to designate any directors for nomination to our board of directors or require us to file registration statements,” Genpact said in the registration document.

Goldman Sachs is underwriting the share sale, Genpact said.

In 2012, Bain Capital had acquired 30% stake in Genpact from General Atlantic and Oak Hill Capital Partners for about $1billion, paying about $14.76 per share for 68 million shares.

Over the last few years, Bain Capital has been selling its holding in Genpact. In February, Bain and GIC sold about 10 million shares, after which they would have held about 20% stake in the company. After the sale, Bain’s right to nominate directors was reduced to two, down from the four its initial shareholder agreement allowed. David Humphrey, a managing partner at Bain Capital, currently sits on Genpact’s board.

ET had reported in 2013 that Bain helped Genpact with acquisitions—often assisting the BPM company’s M&A team—and introduced it to its other portfolio firms to help it win business.

Bain still owns a stake in QuEST Global Services, an engineering research and design company, with a presence in India.


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