Hinduja Global To Consider Share Buyback After Dividend Disappoints
Shares of Hinduja Global Solutions Ltd. gained after it decided to consider a buyback, days after its dividend plan left investors disappointed.
The board of the business process outsourcing firm will meet on Jan. 14 to consider and explore potential mergers and acquisitions and the quantum and timing for buyback of shares, according to an exchange filing.
Shares of the company jumped as much as 9.5% on Tuesday. That recouped part of the 20% plunge on Jan. 7. after the announcement to pay Rs 150 apiece in dividend and 1:1 bonus issue.
The quarterly-dividend paying company had sold its profitable healthcare services business to an arm of Barings Private Equity Asia. The transaction was based on an enterprise value of $1.20 billion, subject to closing adjustments, and resulted in inflows of nearly Rs 8,000 crore to the company.
The dividend and bonus issue, however, will cost around Rs 335 crore, barely 4% of the gains that Hinduja Global Solutions made by selling the unit.
ABOUT THE AUTHOR(S)