Stock Review: Patni Computers

 

After acquiring 63% stake from promoters of Patni, iGate has offered to buy additional shares up to 20% of existing equity for at a price, which is 11.5% premium to the current stock price. The acquisition is expected to bring synergies to the business of Patni that was lacking competent leadership. iGate has a strong presence in the US banking and finance sector, which would add strength to Patni's finance vertical. The overall turnaround is expected to take four quarters, which is likely to boost Patni's otherwise stagnant growth. Therefore, long-term investors should continue to hold their stake in the company.