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Hexaware Tech hits record high as promoter accepts delisting price

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Hexaware Technologies rose 1.56% at Rs 467.85 after the company in a newspaper advertisement announced that the promoter HT Global Holdings has accepted the discovered price of Rs 475 per share, as the final price for the delisting offer.

HT Global IT Solutions Holdings, the investment vehicle of Baring Private Equity Asia, that holds a little over 62% stake in Hexaware Technologies, had earlier announced delisting offer for acquisition of up to 11.38 crore equity shares, representing 37.92% of the total issued equity share capital ("offer shares") of the company from the public shareholders.

The acquirers had fixed a floor price of Rs 264.97 per equity share for the delisting proposal. The voluntary delisting process of Hexaware Technologies from the BSE and the NSE had started on 9 September 2020 and it closed on 16 September 2020.

The acquirer shall acquire 8,72,86,523 equity shares validly tendered at or below the exit price in the reverse book building process and post completion of the acquisition, the shareholding of the acquirer and promoter along with other members of the promoter group shall be 91.16% of the fully paid up equity share capital of the company, which would exceed the minimum number of equity shares required for the delisting offer to be successful.

By delisting, the promoter is looking to obtain full ownership of Hexaware, which will provide increased operational flexibility to support the business.

The Hexaware Tech counter hit a record high of Rs 468.95 in intraday trade today. The stock is up 131.9% from its 52-week low of Rs 201.7 posted on 23 March 2020.

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 is a leading global IT consulting & digital solutions provider.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, September 23 2020. 10:16 IST