Hexaware okays hike in FII limit to 100%

Hexaware Technologies has approved an increase in the limit of foreign institutional investment in the company from the current 74 per cent to 100 per cent at its annual general meeting.

Chief financial officer Rajesh Ghonasgi said, "The move indicates the confidence we have in our company and more importantly reflects good governance. The extension is also to enable free float for foreign institutional investors (FIIs) so that they are not hit be any cap."

FIIs currently hold around 27 per cent in the company. The company has also informed the BSE that at its AGM, which was held today, that its shareholders have also approved a dividend at 50 per cent as well as a sub-division of shares.

Meanwhile, the company has been strengthening its presence in the North American market, which today accounts for 69.8 per cent of Rs 157.0l crore software revenue in the last quarter of 2004.

Hexaware had won significant contracts from two major global corporations based in North America representing multi-year, open-ended corporate relationships. The contract has the potential to grow beyond the current contracted value, which in itself is in excess of $10 million.

The first contract, an MNC, which is a leading Fortune 500 company, has selected Hexaware Tech for its domain functional expertise and automation expertise in testing.

The project would involve environment creation and testing of PeopleSoft modules. The second contract will see Hexaware Tech providing development, support and maintenance to clients of a renowned US-based accounting firm.