A huge block deal was struck in NIIT where the promoters sold a massive 7% stake in the open market. Vijay Thadani, CEO, NIIT told CNBC-TV18 that the deal was struck by a diversified set of buyers - both domestic institutions and foreign institutional holders.Thadani clarified that there will be no fund raising by NIIT or NIIT Technologies to fund the university in any form or fashion. "The two operate very independently. Therefore, any fund raising by NIIT or NIIT Technologies cannot possibly be for NIIT University's benefit," said Thadani. He further added that the stake sale was to fund the next stage of expansion of NIIT University.
Q: Do the promoters plan to sell more stake in NIIT Technologies to fund the university indicated in the press release?
A: No, there is no plan to sell anymore in the foreseeable future.
Q: Can you give us details as to who the buyers are, and eventually, will there be any strategic interest of some other parties in NIIT?
A: No, it was a diversified set of buyers, which were domestic institutions and foreign institutional holders.
Q: Is any part of the educational campus for which you have sold stake related to the financials or the P&L of NIIT Technologies or will it be a separate entity of the promoters?
A: No, the NIIT university is a separate entity; it is a not-for-profit university. It is an independent society and it could be the university of the future. It has its campus on a 100 acre land in Neemrana.
It runs BTech Programs; mostly all programs related to the knowledge economy, BTech, MTech and PhD programs and also MBA programs. It has recently started its new academic year. And these funds are to fund the next stage of expansion.
Secondly, this university believes in 4 core principles - industry linked, technology driven, research based and seamless. And in industry linked, it has a partnership with leading corporations which includes NIIT Technologies.
Q: Where do the synergies lie and will that, in any form, benefit revenues or bottom line for NIIT Technologies?
A: This university provides engineering programmes as well as masters and post-graduate programmes. It has specific masters programmes, for example, in geographic information systems where there is a very severe dearth of people in the country. It is a very up and coming field, and India plays a very important role not only for its own use but also for international use. So we are building up people for that and doing some path-breaking research in that area.
Q: Will any fundraising be required via NIIT Ltd or NIIT Technologies, which will be used to fund the university in any form or fashion?
A: No. I think the two operate very independently. Therefore, any fund raising by NIIT or NIIT Technologies cannot possibly be for NIIT University’s benefit. That can be only for their own benefit.
Q: Separately, are there any fund raising plans for NIIT Technologies?
A: No, there is nothing at this time.