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 Opening Date: May 22 2023
Buyback Closing Date: Jun 02 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 [06.03.2023].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [22.07.2023] by selling your shares through your broker on NSE or BSE.
3. Then on [09-06-2023], 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%


    I did participated in Buy Back and I never received any kind of credit from HGS any idea what will be the last date for amount to credit into the account ?

        I use Zerodha Kite app so whom should I contact about this issue or where I can get more details?
        When I submitted the details for buy back I never received any email or any text regarding this.

        Do I need to contact Zerodha Customer care about this issue or I need to contact someone from HGS?

    I was having 1-1 share in 5 different account. Today i.e 9 June Amount got credited for 2 account only. Remaining 3 account were not credited.
    Anyone has face similar issue.I
    In past also I have applied for buyback.
    Can someone please help me

      Same happened with me too…
      Amount credited late.
      Around 10.00 PM

        Yes, I got the fund in 4 accounts. 1 is still pending (same bank). I hope the funds will get credited tomorrow.

          Got the funds from my broker. My bank account is updated in trading but not in DP so the credit get failed.

    One of the best buyback for me…. bought at 1350 then sold at 1250 and get it back at 1050 and now getting 1700 and 1125 price respectively

      Happy to hear from you Neeraj ji. Hope all are really happy with this one in the end
      Buyback business is also becoming a very tough and testing arena, like IPOs. Let us wait and see how the big one is going to be.

        Yes thanks… who manage this site… can he also put the column for dividend record date too like ipo and buyback

        I don’t think we should sell this share up to 1100 in few days this will go up to 1250 …. I think so

          Sold yesterday @ Rs 1084 and finally exited from HGS in profit

    Got contract note
    62% accepted.
    31 out of 50 shares.

      Thanks Ankit ji. Can you kindly suggest, how to find this information.

        Just asking, How 135 shares in single account comes in retail investors category??
        I thought 200000/1700=118 Max shares for retailers..
        Please correct me..

          For the benefit of the readers, who desires to know about Retail/ small share holder or Retail Category, the following is reproduced below once again:
          As defined under Regulation 2(i)(n) of the Buyback Regulations, a “Small Shareholder” is a Shareholder who holds Equity Shares whose market value, on the basis of closing price on Stock Exchanges as on Record Date, is not more than Rs 200,000/- (Rupees two hundred thousand only). For example, as on the Record Date, the volume of Equity Shares traded on BSE was 1000 and on NSE was 10000 Equity Shares. Accordingly, NSE, being the stock exchange with highest trading volume, the closing price at NSE was Rs 99/- and hence all Shareholders holding not more than 2,020 Equity Shares (200000/ Rs.99/- = 2020.20) as on the Record Date are classified as ‘Small Shareholders’for the purpose of the Buyback Offer…..
          Thus Record date is the criteria as detailed above. Hope it is clear now to act accordingly to ensure that you enjoy the advantage of the retail category.

    The subscription rate is 190 percent.
    What could be the acceptance rate for the retail category?

    Finally, I received a call today from the CS of the HGS and he does not make any comment on the release of the buyback opening and closing date in the public domain. He only clarifies that SEBI approves the Letter of Offer on the 09th May evening. I have now filed a complaint with SEBI against the HGS as I did not receive a satisfactory reply. Will keep the members posted about the progress.


      The close my case mentioning this Remark
      The information provided by you are allegations of violations of SEBI Regulations. This information shall be treated as confidential. This information will be analyzed and if found necessary, further action will be taken. The status of information cannot be ascertained as SEBI conducts the examinations confidentially in a holistic manner. SEBI will neither confirm nor deny the existence of any examination. Any regulatory actions taken by SEBI are published at SEBI website.

    Seems subscribtion is lower than expected as of now.
    Expecting Higher acceptance ratio around 70% or more

      The tender closed on 02 June 2023 and most of the shareholders tender shares in the last 2-3 days so I think to wait a couple of more days to find out the subscription ratio.

    The current subscription of Buyback is not found in NSE or BSE. Can learned members please share the link?

      Bse data link – https://www.bseindia.com/markets/publicIssues/ACQDisp.aspx?id=532859&type=OTB&idtype=1&status=L&IPONo=6143&startdt=22/05/2023
      For the purpose of buyback only BSE will dealt (page 14 of Offer letter which read as follows “The Buyback is on a proportionate basis through the “Tender Offer” route, as prescribed under
      the SEBI Buyback Regulations, and in accordance with the “Mechanism for acquisition of
      shares through Stock Exchanges” as prescribed under the SEBI Circulars.
      In this regard, the Company will request the Designated Stock Exchange to provide the
      acquisition window for facilitating tendering of Equity Shares under the Buyback. For the
      purposes of this Buyback, BSE will be the Designated Stock Exchange.”)

    ER – 38.253%
    AR – I personally think the AR will be around 45-50%. I will place an order for 52% of my holding on the record date.

    I think this is because of good ER and a hefty profit of 46% over the CMP so most of the small shareholders will apply for the buyback with full quantity as on record date.

    Also, I do not want to take a risk as this buyback is already giving a decent margin so want to play safe and keep profit in my pocket. Another reason that I have in my mind is the declaration of buyback around a year ago which keeps shares floating so maybe we see a huge selling pressure after the release of the remaining shares.

    Not sure but have doubts in my mind. Please share what you think.

      Thank you very much for your kind views.

      Beyond your entitlement, the additional shares accepted is in proportion to the number of shares tendered. Therefore, you should tender all your shares to take advance of any additional shares accepted over and above your entitlement.

          Hello Prasad,

          Thanks for your comment.

          I am just tendering additional 14% shares (above my entitlement) as per my personal risk calculation. Assuming AR will be 50%, so my actual tender will be 38% (as per my entitlement) + 14% * 20% (the ratio of acceptance of additional small shareholder category). In this scenario, the released share will be few (as I am tendering only an additional 14%) and I will be able to sell them out at any market price and close the buyback in profit.

          Just for your information, on the record date, I have 644 total shares in my 5 demat accounts belonging to different family members.

    Hinduja Global Solutions BUYBACK Official Details

    Buyback Window Opens : 22 May
    Buyback Window Closes : 02 June

    Buyback Settlement Date : 13 June

    Retail Entitlement Ratio : 38.25%

    *My* Expectation on Retail Acceptance Ratio : 75 to 100% (obviously optimistic).

        You can tender the shares for buyback by filling up the application form which is enclosed with the entitlement letter and submitting it. You may ask your brocker to do it. If your brocker is high tech one, like Zerodha, you can fill a simple form and submit it electronically. The brocker charge is₹ 20+ service tax for Zerodha.

    @Umeshji, How are you able to know the Tender dates even before Corporate Announcement?

    Also, thank you, I had sold off entire HGS holding since the buyback was surrounded by too much delay and uncertainty. Because of staying connected to you, I was able to buy my approx ER at a reasonable price 2 days ago.

    Expected Retail Entitlement = ~35-40%

    Expected Retail Acceptance = 60-70%

      Thank you for your kind valuable views.

      Magical prediction, Umesh Ji. Very nice 💯. Please keep going. In the end,it is a very good buyback. All the best for all participants.

    Hinduja Global Buyback opening date is May 22 and closing on June 2

      Thank you very much for your kind update.

      Hello Umesh
      I am not sure how you get this information but it was not available in public domain as the company file the letter of offer on 11 May. I am going to write HGS buyback registrar as well as SEBI for leaking of crucial information which gives unfair advantage to specific peoples. I hope you also have access to the ER before the letter of offer.

        There is no prior information about the ER. It is always about calculation of approximate ER.

          Thanks, Umesh for replying to my comment. I understand regarding the ER but how can you share the exact buyback opening and closing date? I do not have any authority to ask you but I just want to know if I am missing any public documents which are released by the company before the announcement on NSE and BSE websites. As per my understanding, the announcement is required to be sent on the listing exchange first without publishing the information anywhere.

    Update on HGS global buyback


    Any chance of getting any news from the company regarding buyback this week?
    Or maximum how long we have to wait

      I hope you get the answer today in your mailbox. Just received an update from HSG Buyback via email and it is under process and will be completes soon (not cancelled).

    Sebi had reduced buyback processing period for those having record date after 08/03/23

      Kedia Ji could you please share the link to the sebi document regarding the buyback processing period. Thanks.

    Ajanta pharma was so fast in buyback.
    And HGS is slowest.
    Shows how management values it’s shareholders

    Earlier Buyback were intended to boost share price and provide return to shareholder.

    Nowadays, Buyback are done to dump shares on Retail people. In teamlease, shareholder in retail category have almost tripled due to buyback.

    ALWAYS VALUE COMPANIES WITH HONEST MANAGEMENT, those are the companies in which retail can earn some money.
    Warna there are many thugs in this market.

    Sab ke sab chor h, everyone (from Nayak movie)
    Latest example is BCG, 800cr ka profit galat dikhaya, pe ratio se attractive valuation dikh rha tha, jabki actual mein it’s in loss
    Bcg came down from 180 to below 10.
    Promoter sold, did not even report to stock exchange
    And now retail got trapped

    As per SEBI’s latest regulations on buyback the time limit is 66 days

    Let’s see how much the promoters and company management test the patience.

    They need to bring it in May at any cost
    They cannot cancel it
    Hold your shares tight this is not the price to sell it.

      I do not know if this is possible …..but if so then it is not a good sign for small investors. SEBI should ensure that all the requisites are in place before the record date is announced

      Perfectly pointed….Every compliance need to be checked be record date…. There is always consideration diff in cum-date and ex-date… In past also Larsen and toubro buyback cancelled …. Many retail investors have taken ex-date loss in their book

      The Buyback is undertaken in terms of the SEBI Buyback Regulations, as amended from time to time and the Companies Act 2013, as amended from time to time. There is no provision for cancellation of buyback in either the SEBI Buyback Regulations or the Companies Act 2013. Further, please refer to Regulation 24(i)(d) which stated “the company shall not withdraw the offer to buy-back after the draft letter of offer is filed with the Board or public announcement of the offer to buy-back is made;”

        Any rule regarding for how many days can the company delay the buyback after record date?

      I don’t think Buyback will get cancelled.
      But the fundamentals of this company are not good.

      After buyback, the shares can trade in 500-600.
      This is because company recently acquired loss making, high debt, promoter related company NXT digital. Estimating PE of 10x
      Even before that company makes mid double digit profit every quarter. Approx 50
      So fair market cap = 50x4x10=2000crore
      While current market cap is 5400 crore
      So there is more than 50% downside even from now.

      In other words, quarterly EPS is in high single digit. =9
      PE =10x
      Fair share price = 9×4×10 =360Rs

      You can see even before selling healthcare business, this was the price range in what it was trading usually. ( that is near 300)

      Also promoters related entities, and even employees are constantly selling.
      Only retail getting trapped in name of buyback.

      So be careful

    When we expect ER …. it’s so late …. and any news about upcoming buyback

    Retail Entitlement is expected around 30-35% and Expected Retail Acceptance is around 60-70%.

      It’s been more than one month still not got the entitlement mail.
      Several buybacks which came later have given the entitlement.
      Don’t know how slow is the management of hgs

      No still not received.
      Hope in first week of April we get it.

    When will this bloodbath stop. The share price has come down from 1360 to 1080

    What does it mean by a small shareholder with holding upto 2 lakh
    Considering HGS on record date the price was 1360 so can one hold 147 shares to be eligible as a small shareholder or 117 shares as considering the buyback price of 1700.

      Considering 1360 closing price 147 share will be eligible. But actual closing price was 1219.25 at NSE on 6th march so 164 will be consider for small. Shareholders.

    What does it mean by a small shareholder with holding upto 2 lakh
    Considering HGS on record date the price was 1360 so can one hold 147 shares to be eligible as a small shareholder or 117 shares as considering the buyback price of 1700

    What will be buy price of this stock? When will buyback open? What is maximum time that they can take before open of buyback?

      Accepted ER is around 35-40%

      Retail Acceptance is around 60-70%

        Considering 1360 closing price 147 share will be eligible. But actual closing price was 1219.25 at NSE on 6th march so 164 will be consider for small. Shareholders.


      ✓CMP – Rs. 1,188/-
      ✓BB PRICE – Rs.1,700/- per share
      ✓BB RECORD DT – 06/03/2023

      ✓ Expected Retail Entitlement Around 38%
      ✓ Expected Retail Acceptance Around 70%

      Sir does it depends on the company that which price value is taken on consideration
      Or it is fixed that the price on record date is taken in consideration for buyback

    Why the stock of Hinduja Global fell so sharply today. I know that there is generally a selling trend in the next day after the record date but a decline of 10 percent seems very high.
    Can someone tell what is the reason and will it bounce back to its original level of 1320 during tender dates.

      ex dividend date was also on 6th.
      As for as price concern ,please wait till buyback get open ..After that price MAY improve. Wait till 2 days before closing of buyback .
      After buyback closing some price improvements can be seen

    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

    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.

      What is the right time tp enter in HGS..

      I Hope AR would be around 50% as the Buyback size is reasonable and final buyback price would be around 1600-1500 if market not recover. But no of share will increase accordingly AR would be increase.

      Main loss is yet to happen.
      Share prices will fall even further.
      Will go below 900.. below 800.. below 700..

    @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…

    After around one year waiting. Hope’s that BB price will be 1700 plus

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