Hinduja Global Buyback: What should investors do—Should you tender your shares?

Shares of Hinduja Global Solutions Limited were trading flat with negative bias in the afternoon trade on Monday, a day before record date for Rs 150 dividend per equity share announced by the software and BPO services provider. The record date of Hinduja Global Solutions Limited Rs 150 dividend is on January 18, 2022. 

The Board of Directors of the Hinduja Global has also approved a buyback of up to Rs 1,000 crore. The exact quantum of the buyback, price of buyback, timing of the buyback will be communicated later by the company. 

Earlier, Shares of the IT service management company Hinduja Global Solutions (HGS) Ltd has not reacted well to the corporate announcement on interim dividend and bonus. On January 7, amid profit-booking, the shares of Hinduja Global had hit 20 per cent lower circuit even as the company announced interim dividend of Rs 150 per share and a 1:1 bonus share.  

Mohit Nigam, Head - PMS, Hem Securities, said shares of IT services provider tanked 20% as investors were unhappy with lower-than-expected dividend. 

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"The company's share tanked as investors were disappointed with a lower-than-expected dividend. On completed sale of healthcare services of the company, HGS received around Rs 4,000 per equity share, out of which only Rs150 per share was declared as interim dividend," Nigam had said.  

What should investors do with Hinduja Global buyback offer?  

Meanwhile, Hinduja global buyback is only around the corner and Manoj Dalmia, Founder and Director-Proficient Equities Limited, is of the view that investors should tender their share and wait for levels of Rs 3610 per share.  

"Promoters hold about a 67% stake in this company and buyback might boost retail sentiments. The stock gained 6% on 11th Jan. Considering the volatile price movements, investors can tender their share and technically wait for Rs 3610 levels to cross," suggested Dalmia.  

Earlier, the Board of Hinduja Global has also reviewed potential opportunities and agreed on in-principle one of the opportunities to acquire the digital business of NXTDIGITAL Limited (‘NDL’), a related party, through the issuance of shares.  

The proposed acquisition of the digital business of NDL will be a strategic fit to the Company’s stated strategy of becoming a digital company.  

With a pan-India reach, NXTDIGITAL delivers television services through a dual delivery platform consisting of digital cable and the country’s only Headend-In-TheSky (HITS) satellite platform, under the brand names INDigital and NXTDIGITAL respectively. NDL is the media vertical of the global Hinduja Group.