Hexaware Technologies stock surges over 27% in 2 days on proposed delisting

Analysts' assumption that the delisting price will be higher hinges on previous delisting bids and Hexaware's valuations

Shares of Hexaware Technologies jumped 6.4 per cent on Monday, extending their two-day gains to 27.5 per cent. The sharp gains follow the intent shown by the promoters to take the mid-sized IT services firm private. The indicative price offered by the promoters is Rs 285, 14 per cent below Hexaware’s last close of Rs 332. The reason that the stock has zoomed past its proposed delisting price is optimism behind expectations that the Baring Private Equity-backed firm will revise the price upwards.

“The delisting announcement comes as a surprise and establishes the promoters’ long-term view on the stock. If