Hinduja Global Solutions (HGS) Buyback 2022

(i) Hinduja Global Solutions (HGS) is a service provider headquartered in Bangalore, India, operating on a global level with over four decades of experience working with some of the world’s most popular brands.

(ii) HGS delivers localized solutions and takes customer interaction and satisfaction to a higher level through deep domain and process expertise. It operates a global network of 30+ customer experience centers with 20000 employees across the U.S., Canada, the UK, India, the Netherlands, France, Germany, Italy, Jamaica, UAE, and the Philippines, making a difference to more than 800 of the world’s top brands across nine key verticals.

(iii) Hinduja Tech (HT), part of the multi-billion dollar Global Business Conglomerate, Hinduja Group, is the Integrated Product Engineering and Digital Solutions Provider for the disruptive mobility Industry.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 06 2023
Buyback Offer Amount: ₹ 1020 Cr
Date of Board Meeting approving the proposal: Dec 19 2022
Date of Public Announcement: Dec 19 2022
Buyback Offer Size: 14.36%
Buyback Number of Shares: 60,00,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 1700 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 60,00,000 (Sixty Lakhs ) equity shares of face value of Rs. 10 of the Company (representing 14.36 % of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 1700 (Rupees One Thousand Seven Hundred Only) per equity share payable in cash for an aggregate consideration not exceeding 1020 Cr (Rupees One Thousand Twenty Crore Only).

Salient financial parameters:

Particulars (in Cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales + 3,849 4,470 4,986 2,602 3,264
Expenses + 3,440 4,052 4,320 2,520 3,147
Operating Profit 409 419 667 81 117
OPM % 11% 9% 13% 3% 4%
Other Income + 21 47 58 353 6,170
Interest 35 40 94 35 28
Depreciation 141 178 291 117 121
Profit before tax 254 247 339 282 6,138
Tax % 22% 29% 39% -19% 1%
Net Profit 199 176 206 336 6,104
EPS in Rs 48.23 42.49 48.43 80.59 1,460.35

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Hinduja Global Solutions Buyback Offer 2022 in  Demat or physical form as on the record date [ To Be Updated].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To Be Updated] by selling your shares through your broker on NSE or BSE.
3. Then on [To Be Updated], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 118 Shares at CPM of Rs. 1365 (2,00,000/1700)  
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 1,61,070 1,61,070 1,61,070 1,61,070
(ii) No. of Shares buyback 39 59 89 118
(iii) Buy Back Profit 13,065 19,765 29,815 39,530
(iv) Profit(%) 8.11% 12.27% 18.5% 24.5%

16 Comments

    Promoter and management of HGS is really crook. They have put record date as 6th March, which is the farthest date.
    ER for retail considering all less than 2 LAc are small share holder is 18.05%. Considering the high price ratio of market price and share value (Rs 10) . I Expect ER to be 25% and AR to be 50% for retail.
    Just wish that retail %age is not zoomed by very small quantity share holders, till March.

    buybacks from the open market should be less than 15 percent of the paid-up capital and free reserves of the company and a timeline of six months from the date the offer opens.
    Reportedly, the Sebi panel has suggested reducing the threshold limit and the time for completion of the buyback offer to 10 percent and 66 days from April 01, 2023, and then to 5 percent and 22 days from April 1, 2024.
    The panel proposed that the open market option will be closed for buyback offers from April 2025
    NO OPEN OFFER BUYBACK FROM APRIL 2025

    HGS always behaves like anti small investor. Taken 1 year to get to buyback.. Provided equity to NXT digital… And now further delaying by BB committee for rate finalization and using work like 1700 Max…
    Technically it can be 1400 also 🙁 .
    But Expect it to be at Rs 1700 only and 11-12% Buyback is good nos and I expect atleast 25% AR in Retail.

    @1700 by tender offer .they may reduce bb price as 1700 max word is used .
    50 to 100 less than expected.

    Yes, its almost 1 year waiting for the buyback, the price has shown too bottom and recovery… Also good dividend has been received.
    Now this NXT digital thing is forced by the promoters, leading to increase in the equity base. Lets see the quantum and rate, or if it would be an eye wash as been done since 1 year…

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