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:
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?
Profit from the buyback on the bases of acceptance Ratio:
| 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% |
94 Comments
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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.
EXCELLENT ROHIT, FEW PEOPLE SURLY HAVE EARLY ACCESS TO BUYBACK INFO. THESE GUYS NOT ONLY HAVE EARLY ACCESS TO BUYBACK INFO BUT ALSO TOO IPO RHP.
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.
hni qib bid will come on 1 and 2nd june only
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.”)
Thank you very much for sharing the link, Rohit ji.
Thanks Rohit Ji
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.
advantage in place of advance
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).
👍
How to apply for buyback
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.
Finally ER Comes
1 for Every 3 i.e. 33%
@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%
Sir,
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
Did you got the offer of letter?
Where do you see this information?
Sir,
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
https://drive.google.com/file/d/1QybsI3LbJ0F4zHha-ExfEdYTdliMDqsV/view?usp=drivesdk
Update on HGS global buyback
file:///C:/Users/hp/Downloads/WhatsApp%20Image%202023-04-29%20at%2017.00.34.pdf
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).
Yes
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
We may get buyback new buy this weekend
Wipro & welspun india
27 april meeting date.
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.
There is very high chance that this buyback is going to cancel
Really….
Yes
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
Too much late.
Check here today evening or tomorrow for latest buyback status. sebi website.
https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=3&ssid=14&smid=116
Last communication 10 April…
Is there not any rule from SEBI regarding how much time can a company can take after record date for the buyback to start
Retail Entitlement is expected around 30-35% and Expected Retail Acceptance is around 60-70%.
When will it be open?
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
In case of HGS more important is that when BB will start .
What can be the ER and AR of this buyback?
Any body got entitlement mail??
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
Why the price will be valued at 1360
As record date was 6 March
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?
What would be the expected ER for HGS
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.
HGS LTD. BUYBACK OFFER UPDATES
✓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.
No…. it doesn’t come back to that level…
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.
Sumit Ji, What is your advice, Should we buy now? Expected AR please.
When buyback will open? Expected date?.. Any possibility in this FY
Final Buyback Price is Rs. 1700
Record date is 6th March, 2023
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.
So that I mentioned 1700 plus on 15th dec .
Great estimation Girish ji..
Purchased 17 shares @ Rs.1363.55 in the first phase.
Purchased 30shares @ Rs.1365.55 in the second phase.
Purchased 49 shares @ Rs.1317.95
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.
We can add now i think around 1300.
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…
Any update of todays MEETING.
19.12.2022
Still waiting
After around one year waiting. Hope’s that BB price will be 1700 plus