According to the report, the deal could fetch over $650m, making it one of India’s largest this year. Oracle is thought to be favorite to acquire the 43.1% stake in I-flex, fending off competition from rivals including IBM.
If the move goes ahead, it would sever the 20-year tie between Citigroup and the Indian IT firm, which has tripled its shares since it was listed on the Mumbai bourse in 2002. The company also achieved an all-time high of Rs920 last week.
Citigroup had apparently been looking to offload the group for several months, but sources are keen to stress that the deal with Oracle could still collapse.
Meanwhile, Citigroup is said to be considering selling its 44% stake in another Indian IT provider, Polaris Software.
