Hexaware Tech gains as delisting offer opens

Hexaware Technologies rose 1.37% to Rs 426.80 after IT and business process outsourcing services provider initiated its delisting offer on 9 September 2020.

Hexaware Technologies has fixed a floor price of Rs 264.97 per equity share for the delisting offer which will close on 15 September 2020. The last date for announcement of counter offer is 17 September 2020.

In early June, Baring Asia PE, which holds a 62.34% stake in Hexaware, announced its intent to delist the company. By delisting, Baring PE is looking to obtain full ownership of Hexaware, which will provide increased operational flexibility to support the business.

The IT firm's consolidated net profit dropped 12.86% to Rs 152.45 crore on 1.77% increase in revenue from operations to Rs 1,569.12 crore in Q2 June 2020 over Q1 March 2020.

Hexaware Technologies provides IT, BPO and consulting services. The scrip surged 111.60% from its 52-week low of Rs 201.70 hit on 23 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 63.643. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 384.60 and its 200-day moving average (DMA) placed at 328.59.

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