Hexaware News

Hexaware provides automation, cloud and customer services-related technology to a wide range of industries including finance, education, hospitality and manufacturing

Rajeev Kumar Mehta previously served as the President of Cognizant, where he took Cognizant from being a small regional IT firm to more than USD 16 billion in revenue

The recovery cycle for some of troubled verticals that require footfall, like travel and transportation, could be well into 2022, he added

If Hexaware gets delisted, it will be at a price closer to the current market price, rather than Baring’s offer price

It may make sense for investors to exit at current prices, rather than wait for the outcome of the delisting process

On Monday, Hexaware shares traded at ₹329.90, up 6% from previous close. They had hit 20% upper circuit on Friday when the company had announced its intention to delist the stock

Buyouts in the IT services sector in the past have happened around 12-15 times trailing 12 months Ebitda, analysts at Kotak said Assuming a 12 times multiple to Hexaware’s trailing 12 months Ebitda would imply a delisting price of ₹360, calculation by analysts show

The holding firm for Baring offered ₹285 per share to buy the remaining shares to take its shareholding in Hexaware to 90%

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

The company said it was suspending the guidance provided earlier for calendar 2020Hexaware sees the current crisis providing opportunities for share gains but expects weakness in revenues and margins in June quarter