Patni Computers + IndusInd Bank

Shares of under performing and family managed company Patni Computers are trading up because of rumor that Private Equity investors may BUY stake in the company. The promoters have been slacking and are incompetent.

As per reports, private equity (PE) funds Texas Pacific Group and Apax Partners are close to purchasing the stake of two Patni brothers Ashok and Gajendra in Patni Computer Systems Limited.

The agreement between one of the private equity partners and the Patni brothers, who jointly hold 29% stake, is expected to be signed next month. Reports suggest Narendra Patni, the eldest brother and chairman and chief executive officer of the company, would buy out a part of the stake which Ashok and Gajendra had put on the block, while the private equity funds would buy the balance.

Indusind Bank Limited, yet another family managed bank which is underperforming the BSE-Bankex just a while ago denied rumours that ABN Amro Bank, Deutsch Bank and other foreign banks are interested in picking up a stake in Indusind Bank. Indusind management said it is not aware of any such developments.