Stock Report

Hinduja Global Solutions Ltd approves buyback at Rs. 1700 per share

Posted On : 2022-12-20 08:41:48( TIMEZONE : IST )

The Board of Directors of Hinduja Global Solutions Limited at its meeting held today, i.e., Monday, December 19, 2022 has considered and approved the proposal for the buyback of fully paid up equity shares of the Company having a face value of Rs. 10 (Rupee Ten only) each ("Equity Shares" and such buyback "Buyback") from all shareholders / beneficial owners of the equity shares of the company, as on record date (which will be decided subsequently by the Board / Buyback Committee), on a tender offer mechanism for acquisition of shares through stock exchange, at a buyback price not exceeding 1,700 (Rupees One Thousand Seven Hundred only) per Equity Share ("Maximum Buyback Price"), payable in cash, for an aggregate amount of upto Rs. 1020,00,00,000 (Rupees One Thousand and Twenty Crores only), excluding any expenses incurred or to be incurred for the Buyback viz. brokerage, costs, fees, turnover charges, taxes such as buyback tax, securities transaction tax and goods and services tax (if any), stamp duty, advisors fees, filing fees, printing and dispatch expenses and other incidental and related expenses and charges ("Buyback Size").

The indicative maximum number of Equity Shares to be bought back at the Maximum Buyback Price subject to the Buyback Size are 60,00,000 (Sixty Lacs) Equity Shares. However, the actual Equity Shares bought back, may exceed the Indicative Maximum Buyback Shares, if the Buyback price fixed by the Board / Buyback Committee is less than the Maximum Buyback Price, subject to the number of shares being bought back not exceeding 25% of the total number of Equity shares in the paidup Equity Share capital of the Company and the amount utilized not exceeding the Buyback Size. The Indicative Maximum Buyback Shares represent 14.36% and 11.43% of the total Paid Up Equity Shares of the Company as on September 30, 2022 and December 17, 2022, respectively.

The Buyback Size represents 24.15% and 13.19% of the aggregate of the Company's fully paid-up equity share capital and free reserves as per the latest special purpose condensed standalone and consolidated audited financial statements of the Company, respectively, being the financial statements for the period ended September 30, 2022, which does not exceed 25% of the aggregate of the total paid-up capital and free reserves of the Company in accordance with Regulation 4(i) of the SEBI Buyback Regulations.

The Maximum Buyback Price represents premium of 28.99% and 29.09% over the closing price of the equity shares on National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE") respectively, on December 13, 2022.

The board has constituted a committee called 'Buyback Committee' for the purpose of the Buyback in accordance with the Regulations and has delegated its powers to do such acts, deeds, matters, and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in relation to the proposed Buyback.

Shares of Hinduja Global Solutions Limited was last trading in BSE at Rs. 1405.95 as compared to the previous close of Rs. 1397.55. The total number of shares traded during the day was 2897 in over 492 trades.

The stock hit an intraday high of Rs. 1429.05 and intraday low of 1398.20. The net turnover during the day was Rs. 4086821.00.