Hexaware Tech hits record as promoters accept delisting price. The promoter has accepted the price of Rs 475 per share as the final price for the delisting offer. Hexaware Technologies share rose 2% to a record high of Rs 468.95 on Wednesday after the company said promoter HT Global Holdings has accepted the discovered delisting price of Rs 475 per share. The stock was trading at Rs 468.20, up 1.64% from its previous close, while the benchmark index Sensex gained 0.04% to 37750.83. In a newspaper release, Hexaware Technologies said that the acquirer and promoter have accepted the discovered price of Rs 475 per equity share the final price for the delisting offer.
HT Global IT Solutions Holdings is an investment arm of Baring Private Equity Asia. They hold over a 62% stake in Hexaware technologies. They had earlier announced a delisting offer for the acquisition of up to 11.38 crore equity shares, representing 37.92% of the total issued equity share capital of the company from public shareholders. The acquirer had fixed a base price of Rs 264.97 per equity share for the delisting proposal. The voluntary delisting process of Hexaware Technologies from the NSE and the BSE had started on 9 September and closed on 16 September.
The acquirer shall acquire 87.28 million equity shares tendered at Exit Price or below in the Reserve Book Building process and post completion of the acquisition, the shareholding of the acquire and promoter along with members of the promoter group shall be 91.6% of the share capital of the company, which would exceed the minimum number of equity shares required for the delisting offer, the company said. The combined net profit of the IT consulting and digital solutions provider dropped down to 12.86% to Rs 152.45crore in the June quarter. Its revenue from operations rose 1.77% to Rs 1,569.12crore in the period. The Hexaware Tech counter hit a record high of Rs 468.95 in intraday trade. The stock is up 31.9% from its 52-week low of Rs 201.7 as per 23 March 2020.
Through delisting, the promoter is looking to obtain full ownership of Hexaware, which will provide increased operational flexibility to support the business. The main goal of the proposal is to supply possession of the corporate to the promoter group which, in turn, will present elevated operational flexibility to assist the business.