Shares of the IT service management company Hinduja Global Solutions (HGS) Ltd tanked 20% to Rs 2855.45 per share on the BSE on Friday. Shares of Hinduja Global were locked in the 20 per cent lower circuit even as the company announced interim dividend of Rs 150 per share and a 1:1 bonus share. The decline in the share price of the IT services provider is attributed to profit booking after corporate announcement on interim dividend and bonus.  

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At 11.30 am on Friday, shares of Hinduja Global Solutions declined Rs 713.85 per share or 20.00% to Rs 2855.45 -713.85. The shares have hit 52-week high only on January 4, 2022, of Rs 3,948 per share, while 52-week low remains Rs 1,055.60, which the shares touched on January 27, 2021.  

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Mohit Nigam, Head - PMS, Hem Securities, said shares of IT services provider tanked 20% as investors were unhappy with lower-than-expected dividend.  

Nigam said Hinduja Global Solutions has also completed the sale of its healthcare services business to wholly-owned subsidiaries of Betaine BV, funds affiliated with Baring Private Equity Asia (BPEA), one of the largest private alternative investment firms in Asia. The transaction was based on an enterprise value of $1,200 million, subject to closing adjustments, and resulted in inflows of $1,088 million, he underlined. As part of this disinvestment all client contracts, assets, infrastructure and employees will start working for the new company, said the market expert.  

"As a result, the company's share tanked 20% in the morning session of 7th January as investors were disappointed with a lower-than-expected dividend. On completed sale of healthcare services of the company, HGS received around Rs.4000 per equity share, out of which only Rs150 per share was declared as interim dividend. Although this disinvestment will make capital available for the company to make investments and grow business in other verticals like Telecom, BFSI and Media etc," said Mohit Nigam 

Earlier on January 6, in an exchange filing on January 7, the IT services provider firm declared third interim dividend of Rs 150 per share (1500 %) for the Financial year 2021-22 and fixed January 18, 2022 as the “Record Date” for the payment of this dividend. "The dividend will be paid to the eligible Shareholders/ Members on or before January 27, 2022," said the BSE filing by the company.  

It also recommended issuance of new equity bonus shares in the proportion of 1 equity share of Rs 10/- each for every 1 existing Equity share of Rs 10/- each held by the Shareholders/ Members of the Company as on the record date, subject to the approval of the Shareholders/ Members and Statutory/ Regulatory approvals, other approvals, consents, permissions, conditions and sanctions, as may be necessary. 

Engaged in Business Process Outsourcing (BPO)/ Knowledge Process Outsourcing (KPO), the HGS claims to combine automation, analytics, and artificial intelligence with deep domain expertise focusing on digital customer experiences, back-office processing, contact centers, and HRO solutions.