Hinduja Global Solutions (HGS) shares rose 5% to Rs 2,985.70 on the BSE in Tuesday’s intraday session, after the business announced a buyback plan following a 25% drop in its stock price from a record high reached last week.
“A meeting of the board of directors of Hinduja Global Solutions will be held on January 14, 2022, to consider and explore quantum/timings of buy-back of equity shares of the company,” HGS said in an exchange filing. The board will also consider potential merger and acquisition opportunities, the company said.
At 11:02 a.m., HGS was trading 4% higher on the BSE at Rs 2,960, compared to a 0.22% advance in the S&P BSE Sensex. On the NSE and BSE, a total of 455,000 equity shares were traded.
On Friday, January 7, the shares of the company that specializes in Business Process Outsourcing (BPO)/Knowledge Process Outsourcing (KPO) fell 20% after the company announced a 1:1 bonus and an interim dividend of Rs 150 per share. It had corrected 28% from its all-time high of Rs 3,948 on January 4, 2022.
In August 2021, the firm sold its health care division to Baring’s private equity fund for $1.2 billion (Rs 8,000 crore), and stockholders were expecting a substantial dividend from the company. However, its minority shareholders were left disappointed as the business stated on Thursday that it was only giving Rs 150 as a special dividend to celebrate the acquisition, causing its share price to plummet.
For the September 2021 quarter, the company recorded a 68% increase in consolidated net profit at Rs 136.5 crore. The company had recorded a net profit of Rs 81.3 crore in the July-September 2020 quarter, HGS said in a statement. Its revenue from operations climbed 18.8% to Rs 1,582.6 crore between July and September 2021, compared to Rs 1,332.5 crore the previous year.