Baring PE, through HT Global, holds 62.4% stake in Hexaware, while 37.6% is held by public shareholders. For the delisting, HT Global will consider a price of ₹285 apiece
MUMBAI: Shares of Hexaware Technologies, owned by Baring Private Equity Asia (Baring PE), jumped 20% to ₹311.30 apiece on Friday after the company said its board will consider a proposal to delist the stock from Indian exchanges.
"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.
Baring PE, through HT Global, holds 62.4% stake in Hexaware, while 37.6% is held by public shareholders. For the delisting, HT Global will consider a price of ₹285 apiece, almost a 10% premium over the closing price of 4 June.
The board will meet on 12 June to take a decision on the proposal.
At the indicative offer price for delisting, Baring PE will have to spend over ₹2,300 crore to cross the 90% threshold needed to delist the company.
In April, Fitch Ratings affirmed HT Global's long-term foreign- and local-currency issuer default rating at 'BB-' and revised the outlook to negative from stable. The agency has also affirmed the rating on HT Global's $368 million, 7% senior secured notes due 2021 at 'BB-'.
The negative outlook reflects the higher refinancing risks for the bond that matures in July 2021, given tight capital market conditions in the near term, and Fitch's expectation that HT Global's proportionately consolidated FFO net leverage will remain high due to slower revenue growth arising from the economic effects of the coronavirus pandemic.