Hexaware hits the roof on delisting plan

Hexaware Technologies hit an upper circuit of 20% at Rs 311.30 after the company said its board will meet on on 12 June 2020 to consider a proposal to voluntarily delist equity shares of the company.

As on 31 March 2020, the promoter HT Global IT Solutions Holding held 62.4% stake in the company while the public shareholders held 37.6% stake.

As a part of the delisting offer, HT Global IT Solutions Company, the promoter has given an indicative offer of Rs 285 per share, which is a 9.8% premium on the closing price of the shares on 4 June. The floor price will be separately informed to the company in due course.

The delisting will provide the promoter increased operational flexibility to support the company's business. The delisting will also help in cost savings and allow the management to dedicate more time to and focus on the company's business, the firm said.

Hexaware Technologies' consolidated net profit rose 4.27% to Rs 174.96 crore on a 0.85% increase in revenue from operations to Rs 1541.75 crore in Q1 March 2020 over Q4 December 2019. The company had suspended the guidance that was provided earlier for FY2020, as COVID-19 has led to significant uncertainty in the current environment. In the previous quarter, the company had forecast its revenue in FY2020 to grow in the range of 15%-17% and had pegged EBITDA (post RSU cost) growth in the range of 15%-16%.

Hexaware Technologies provides IT, BPO and consulting services.

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