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:
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% |
16 Comments
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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.
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.
@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