Hexaware Technologies share price ended 20% higher today after the firm said its board would consider a proposal to delist the stock from Indian exchanges. Share price of Hexaware Technologies hit upper circuit of 20% at Rs 311.30 compared to the previous close of Rs 259.45 on BSE.
Share price of Hexaware Technologies stands higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. The stock hit a 52 week high of Rs 439 on June 21, 2019 and 52 week low of Rs 201.70 on March 23, 2020.
Total 2.20 lakh shares changed hands amounting to turnover of Rs 6.64 crore on BSE. The stock has lost 10.7% during last one year and fallen 7% since the beginning of this year.
"Promoter (HT Global IT Solutions) has expressed its intention to, either individually, or together with the one or more members of the promoter group including its subsidiaries, acquire all fully paid up equity shares of the company that are held by the public shareholders of the company, as defined in the Delisting Regulations, and consequently voluntarily delist the equity shares from BSE and NSE," the company said in a statement.
As on March 31, 2020, promoter held 186,318,590 equity shares representing 62.4% of the equity share capital of the company and, the public shareholders held 112,065,731 equity shares representing 37.6% of the equity share capital of the Company. 3
The promoter has proposed to consider a price of Rs 285 per equity share for delisting proposal. The offer price represents a premium of 9.8% (for BSE) and 10.0% (for NSE) over the closing market price as on June 4, 2020.
The IT firm posted a 26.3 per cent rise in Q1 net profit at Rs 175 crore against net profit of Rs 138.4 crore in the January-March period of 2019.
Hexaware said it was suspending its guidance for FY20 amid uncertainty due to COVID-19 pandemic. The company follows January-December as its fiscal year.
Revenue rose 22 per cent to Rs 1,541.7 crore in the quarter under review as compared with Rs 1,264 crore in the year-ago period.
"COVID-19 has led to significant uncertainty in the current environment. In view of this, we suspend the guidance that was provided earlier for FY'20," it said.