Mastek denies deal talk with Zensar, to focus on seizing biz opportunities in future

Mumbai, Feb 5 (PTI) Mid-tier IT company Mastek is not in any "active conversation" for any deal with Zensar Technologies, and will be focusing on growing its business by itself going forward, a top official said on Thursday.

Umang Nahata, the company's chief executive, said Mastek gets "unsolicited offers" regularly from both strategic investors and otherwise because it is "undervalued".

"Everybody sees an upside in the business. We also believe that a phenomenal opportunity lies ahead for the business in the medium term, given the changes which are happening," Nahata told PTI.

Media reports earlier this week had suggested a transaction between Zensar and Mastek is in the works, and some had also pegged the deal to be over USD 800 million.

"There is no active conversation. No transaction is in the works. We want to focus on growing our business," he said.

The company's low price to earnings ratio versus peers and the business strengths including competencies on Oracle, effecting management changes and targeting the right markets lead to the deal opportunities, he said.

Nahata said the company has also increased its revenue per employee through a 12 per cent reduction in the workforce by not appointing people in place of those who move on.

When asked if he denies the company being a target for a buyout, he declined a direct comment and said that an "out of the world" opportunity benefiting all the stakeholders can always be considered.

The company has not appointed any banker to help it with any deal either, he added, reiterating that the deal calls are unsolicited ones.

When asked if the promoters, who own over 37 per cent stake, will sell, Nahata said there might be some sell-offs from a liquidity requirements perspective, but there is no sale to any strategic player.

The company will be upping its focus in the US market going forward, and sees a lot of tailwinds being generated for its business with the current headlines around the increasing warmth between India and the US, he said.

The Mastek scrip closed 0.26 per cent up at Rs 2,072.50 a piece on the BSE on Thursday, as against a 0.60 per cent correction on the benchmark. PTI AA MR