Mid tier IT firm Hexaware Technologies board approves the proposed delisting of firm based on recommendation from the merchant banker.
The company announced in early June its promoter Baring PE Asia’s intent to delist. On June 12, the company appointed ICICI Securities as merchant banker for delisting of the company from stock exchanges and carry out due diligence.
The merchant banker submitted the report on June 18.
In a BSE filing on June 20, Hexaware said, “The Board has discussed and provided its consent to the Proposed Delisting with Regulation 8(1)(a) of the Delisting Regulations.”
“This consent is subject to consent of the shareholders of the Company through postal ballot in accordance with Delisting Regulations and subject to any other requirement under applicable laws including any conditions as may be prescribed or imposed by any authority while granting any approvals,” the statement added.
“The Board authorised identified personnel for taking necessary steps to finalise the draft notice of postal ballot and allied matters,” the statement further added.
The decision took in to account the objective of the proposal, which was to focus on the business. In the statement, the board said that the main objective of the delisting proposal was for the promoter/promoter group to obtain full ownership of the company, which would - in turn - provide increased operational flexibility to support the company’s business.
“The delisting will also help in cost savings and allow the management to dedicate more time to focus on Company’s business,” the statement added.
In addition, the promoter has no immediate plans to sell its holding in the company or merge the company with its other portfolio companies or affiliates. “However, the acquirer (Baring PE Asia) is in the business of making and exiting investments, evaluates various proposals with respect to its investments in the ordinary course of business and will continue to do so,” the statement added.
Baring PE Asia holds 62.4 percent stake in Hexaware which it acquired the firm back in 2013. In 2019, it acquired NIIT Technologies.