Mumbai, 14th September 2020 (GNI): The delisting offer of Hexaware Technologies Ltd which started on September 9th has been getting strong traction from institutional investors and large investors like HDFC Mutual Fund, Invesco MF and foreign investor T R Rowe have offered their entire holding to the extent of 3.26 crore shares in the range of Rs 440 to Rs 475, according to sources close to the offer.
As on Friday, a total of over 4 crore shares have been tendered at a price between Rs 400 to Rs 475. As of now a big chunk of astute investors have participated in the offer and their bid price is between Rs 440 and Rs 475. A total of nearly 48% of the minimum required has been tendered at or below Rs 475. For the success of the delisting offer at least 8.26 crore shares needed to be tendered at a price acceptable by the promoters, Baring. The delisting offer is for total of 11.26 crore shares.
“As per the latest shareholding pattern, institutional shareholders own 8.11 crore shares, which means retail shareholders need to participate in the offer and can’t be a mere spectator. It is quite possible that if retail investors fail to participate or be greedy in terms of unrealistic tender price, the issue may fail and the stock may tank like INEOS … The delisting offer of INEOS failed and the stock tanked by 45 per cent leading to huge losses for investors” said Dinker Shanbhag, head (institutional equities), Lotus Global Equities.
“Looking at the trend till Friday, the book is building at Rs 475. In case retail investors bid at Rs 300 or Rs 400 and the discovered price is at Rs 475 and accepted by Baring, all the investors will get Rs 475 per share and not the lower bid price they had offered,” Mr Shanbhag added.
The delisting offer is for a total of 11.26 crore shares, the promoters Baring (HT GLOBAL IT SOLUTIONS HOLDINGS LIMITED) hold the remaining 18.63 core shares or 62.34 per cent of the equity.
In case the delisting is successful at a book build price of Rs 475, shareholders will get a huge premium of around 66% or Rs 190 to the indicative price of Rs 285/-, stated in the press release.ends
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