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As dividend disappoints, Hinduja Global tanks 20%

Our Burea Mumbai | Updated on January 07, 2022

Shares of Hinduja Global Solutions were locked in the 20 per cent lower circuit at ₹2,855.5 on the BSE on Friday’s trade after the company announced lower-than expected dividend.

On Thursday, the company approved the third interim dividend of ₹150 per equity share for FY22 and fixed January 18, 2022, as the “Record Date” for the payment of this dividend.

Hinduja Global Solutions has also completed the sale of its healthcare services business to wholly owned subsidiaries of Betaine BV, funds affiliated with Baring Private Equity Asia (BPEA), one of the largest private alternative investment firms in Asia. The transaction was based on an enterprise value of $1,200 million, subject to closing adjustments, and resulted in inflows of $1,088 million.

Mohit Nigam, Head - PMS, Hem Securitiessaid, “The company’s share tanked 20 per cent as investors were disappointed with a lower than expected dividend. On the completion of the sale of healthcare services, HGS received around ₹4,000 a share, out of which, only ₹150 per share was declared as an interim dividend.

However, this disinvestment will make capital available for the company to make investments and grow business in other verticals like Telecom, BFSI and Media etc.”

Published on January 07, 2022

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