Hinduja Global Solutions was locked in the 20% lower circuit as shareholders were disappointed with a lower-than-expected dividend.

On Thursday, the company had announced an interim dividend of Rs. 150 per share (1,500%) for FY 2022 and has fixed 19 January 2022 as the “record date” for the same.

On Tuesday, 4 January 2022, the company had intimated to stock exchanges about holding a board meeting to consider an interim dividend and propose a bonus issue of equity shares. Investors had received the news well as the stock hit a record high of Rs. 3,948 on the BSE.

However, investors were unhappy with the lower-than-expected dividend. The total dividend declared sums to Rs. 315 cr. against the proceeds of $ 1.09 bn. from the sale of Hinduja Global Solutions’ healthcare operations to a wholly-owned subsidiary of Betaine BV. The transaction was based on the business’ enterprise value of $ 1.20 bn, subject to closing adjustments.

As of March 2021, the Hinduja Global had Rs. 1903.22 crore of free reserves and securities premium.

Additionally, the firm has also approved to increase the limits of extending loans, investing, and offering guarantees or security up to Rs. 3,500 cr. under Section 186 of the Companies Act subject to the approval of the shareholders/members and statutory/regulatory and other necessary approvals.

Hinduja Global had rallied 24% compared to a 5% increase in the S&P BSE Sensex in the past month until Thursday.

Aradhana Gotur

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