Hexaware Technologies hits 20% upper circuit on voluntary delisting plan

Shares of Hexaware Technologies were locked in the upper circuit band of 20 per cent at Rs 311 on the BSE on Friday after the company said that its board is scheduled to meet on June 12, 2020 to consider the proposal for voluntary delisting of equity shares of the company.

The trading volumes on the counter nearly doubled with a combined 4.12 million equity shares changing hands till 10:00 am. There were pending buy orders for around 600,000 shares on the NSE and BSE, the exchange data shows.

“HT Global IT Solutions Holdings, the promoter of the company has expressed its intention to acquire all fully paid up equity shares of the company that are held by the public shareholders of the Company,” Hexaware Technologies said in a exchange filing. The company’s shares are presently listed on the BSE and the National Stock Exchange of India (NSE).

As on March 31, 2020, the promoter group held 186.3 million equity shares, representing 62.4 per cent of the equity share capital, of the company and, the public shareholders held 112 million equity shares, representing 37.6 per cent of the equity share capital, of the company.

“The promoter considers a price of Rs 285 per equity share (Indicative Offer Price) as a price at which the promoter / promoter group will be willing to accept equity shares in the delisting proposal. The indicative offer price represents a premium of 9.8 per cent for BSE and 10 per cent for NSE over the closing price as on Thursday, June 4, 2020. The floor price will be separately informed to the Company in due course,” Hexaware Technologies said.

The company further said the main objective of the delisting proposal is for the promoter/ promoter group to obtain full ownership of the company which will in turn provide 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 delisting proposal will provide the public shareholders an opportunity to realize immediate and certain value for their Equity Shares at a time of elevated market volatility, it said.