Hexaware Technologies deliberates delisting its shares

The board of directors of Hexaware Technologies convened a meeting today with an aim to take a decision on delisting of its shares. The promoter entity HT Global IT Solutions Holdings Limited had voiced its intention to make a voluntary delisting offer.

Relevant regulations require the delisting proposal to be approved by the board and the shareholders of the company. However, the board can approve such a proposal only after receipt of a due diligence report from a merchant banker appointed by the Board in this regard. Therefore, to meet this requirement, the board has appointed ICICI Securities to carry out the due diligence.

On June 05, 2020, the company had informed that the promoters are willing to buy equity shares at an indicative offer price of Rs 285 apiece, which was about 9.8 per cent premium from the closing price of June 04. However, Hexaware's stock has rallied since that day and is trading at Rs 323 apiece today. Yet, this is not the final price at which shareholders can tender their equity shares, as voluntary delisting of equity shares will be carried out through a reverse book building. The promoters are not allowed to participate in the reverse book building process. The final offer price shall be determined as the price at which the maximum number of shares is offered.

In the case of delisting of Essar Oil, the initial offer was made at about Rs 146 apiece but the delisting actually happened later at the final discovered price of Rs 262.8.