Hinduja Global hits record high on divestment of healthcare services biz

On Monday, August 9, the company entered into definitive agreements to divest its healthcare services business to funds affiliated with Baring Private Equity Asia (BPEA)

Shares of Hinduja Global Solutions were locked in the upper circuit of 5 per cent at Rs 3,397.60, also its new record high on the BSE on Wednesday, rising 10 per cent in the past two trading days in an otherwise weak market after the company announced divestment of its healthcare services business to funds affiliated with Baring Private Equity Asia (BPEA) for an enterprise value of US$ 1,200 million.

In comparison, the S&P BSE Sensex was down 0.45 per cent or 244 points at 54,311 at 10:38 am. A combined 88,173 equity shares had changed hands on the counter and there were pending buy orders for 68,944 shares on the NSE and BSE. Currently, the stock is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

The Hinduja Group’s business process management entity, Hinduja Global Solutions (HGS), announced on Monday, August 9, that it has entered into definitive agreements to divest its Healthcare Services business to funds affiliated with Baring Private Equity Asia (BPEA), one of the largest private alternative investment firms in Asia.

The transaction is based on an enterprise value of US$ 1,200 million, subject to closing adjustments, and is expected to complete within 90 days, subject to shareholder and other regulatory approvals, HGS said in a press release.

HGS’ healthcare services business supports payers, providers, laboratories, durable medical equipment firms and pharmaceutical companies with solutions that augment clients’ healthcare teams to deliver better patient, member, business and financial outcomes. Post completion of the transaction, HGS will transfer all client contracts, employees, and assets, including infrastructure related to the Healthcare Services business, the company said.

HGS will focus on strengthening its Consumer Engagement Solutions (CES), HGS Digital and HRO/ Payroll businesses that support several top global brands across its nine verticals. Services to healthcare clients delivered by the HGS Digital and HRO/ Payroll businesses will continue to be part of HGS’ portfolio, it said.

In the past three months, the stock of HGS has outperformed the market by surging 105 per cent, as compared to a 10.5 per cent rise in the S&P BSE Sensex. In the last one year, it has zoomed 410 per cent, as against a 41.5 per cent gain in the benchmark index.