Mid-tier IT firm Hexaware Technologies has received nod from its shareholders for de-listing from the stock exchanges. Voting for the same was open from July 9 till August 8.
Promoters Baring Asia PE, who announced their intent to de-list in June, can now push the proposal forward. Earlier, the company board had approved the de-listing.
Of the 1,197 shareholders who voted, 705, including promoters, voted in favour of the de-listing. Of this, public shareholder votes accounted about 7.3 crore. Close to 492 shareholders with 56 lakh votes were tendered against the proposal.
According to a filing in the Bombay Stock Exchange, the resolution for de-listing has been passed since the number of votes in favour is three times more than those that voted against it.
“In terms of Regulation 8(1) (b) of the Delisting Regulations, the Special Resolution will be considered to have been passed only if the votes cast by public shareholders in favour of the proposal amount to at least two times the number of votes cast by public shareholders against it (requisite majority)," the scrutiniser’s report explained.
The scrutiniser’s report said the resolution is considered passed since it has the requisite majority.
Now that the de-listing is happening, it is unlikely to change operations.
In a recent interaction with Moneycontrol, R Srikrishna said the de-listing would have no impact on its operations or employees and clients. He added that clients have so far raised no concerns over the move, and there are no issues on retaining employees either. “The whole idea is to continue as it is,” he stated.
Employee compensation is not likely to be an issue as well. In an earnings call on July 28, he said if the de-listing goes through, employees with company stocks would be adequately compensated. This could be through ownership plans similar to restricted stock units (RSU), he said. RSU is a compensation issued to employees in the form of company shares.
Baring PE Asia holds a 62.4 percent stake in Hexaware, which it acquired in 2013. The company has a market capitalisation of Rs 11,212 crore. The company's stock increased close to 10 percent right after the announcement and has increased more than 20 percent to Rs 374 by July-end. Currently, the stock is trading at Rs 400 per share.
The de-listing would give the company complete control and improve operational efficiency. According to a CNBC-TV18 report, the delisting would offer promoters better value for their stake. The report added that the delisting will help Hexaware scale faster and in selling stake to a strategic investor.
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