Hexaware delisting offer opens

Mumbai: The reverse book building process of Hexaware Technologies, the first delisting offer by a private equity player in India opened on Wednesday.

For existing investors it’s an opportunity to exit at slightly above current levels, new investors should be careful in building up new positions especially in the weak market as there is limited upside, said analysts. They expect that the book is likely to be built anywhere in the range of ₹450-470.

The reverse book building window for the delisting would be available from 9 September to 15 September which will be keenly watched after the recent unsuccessful delisting of INEOS Styrolution and Linde India. The Hexaware stock has already rallied 48% over indicative price of ₹285 to close at ₹422 on Wednesday.

“We don't expect minority investors of any IT company likely to surrender shares at a significant discount to its prevailing market price given the current strong demand backdrop for IT/digital services. So ₹420-450 is the right range for minority shareholders to tender their shares,” said Suyog Kulkarni, analyst at Reliance Securities.

“We believe investors could bid at ₹450-480 and this could be a fair price,” said Vaibhav Chechani, analyst, Centrum Broking.