Mumbai :  Shares of Mphasis rose by over 5 per cent on Thursday amid reports that Blackstone Group is close to acquiring the IT firm. Following the buzz, the stock surged 5.10 per cent to close at Rs 489.05 on BSE. During the day, it climbed 7.45 per cent to Rs 500.

On NSE, shares of the company jumped 5.18 per cent to close at Rs 492.25. The company added Rs 501.1 crore to reach Rs 10,279.10 crore in market valuation.

“IT major Mphasis surged following market reports that at least three contenders are bidding to acquire the company.

According to market reports Blackstone has emerged as the single largest contender for the same. Mphasis is currently valued at over Rs 10,000 crore,” said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.

As per media reports, private equity investor Blackstone Group is close to acquiring IT firm Mphasis in an over USD 1- billion deal.

HP owns nearly 60.5 percent stake in MphasiS, and the U.S.-based parent had been looking to exit from the Indian venture.

Meanwhile, with regard to news reports that Tech Mahindra and Apollo Global Management are in race to buy Hewlett Packard Enterprise’s 60.55 per cent stake, Mphasis had in a BSE filing last week said that “neither the company nor its CEO is involved in any such negotiations.” Mphasis Limited was formed in June 2000 after the merger of the US-based IT consulting company Mphasis Corporation and the Indian IT services company BFL Software Limited.