Hinduja Global Solutions board okays Rs 1,020 crore buyback

The board of Hinduja Global Solutions Ltd (HGS), the group’s business process management arm, approved a buyback of 60 lakh shares worth Rs 1,020 crore on 19 December.

A decision in this regard was taken at the board meeting held on Monday, according to a filing.

The board has approved a buyback price of Rs 1,700 per equity share payable in cash for an aggregate amount of up to Rs 1020 crore, excluding any expenses related to the buyback, including brokerage, costs, fees, turnover charges, taxes such as buyback tax, securities transaction tax, and goods and services tax (if any), stamp duty, advisors fees, filing fees, printing and dispatch expenses, and other incidental and related expenses and charges.

“The indicative maximum number of equity shares to be bought back at the maximum buyback price subject to the buyback size are 60 lakh equity shares,” it said.

However, the actual equity shares bought back may exceed the indicative maximum buyback shares if the buyback price fixed by the board/buyback committee is less than the maximum buyback price, subject to the fact that 25 percent of the total number of equity shares in the paid-up equity share capital of the company cannot be bought back and the amount used cannot exceed the buyback size.

According to the report, the indicative maximum buyback shares represent 14.36 percent and 11.43 percent of the company’s total paid-up equity shares as of 30 September 2022 and 17 December 2022, respectively.

It said the size of the buyback represents 24.15 percent of the company’s fully paid-up equity share capital and free reserves, according to the latest special purpose condensed standalone and consolidated audited financial statements.