Hinduja Global hits 5% UC

Hinduja Global Solutions, which had closed yesterday at Rs.3081.80, opened itself today 5% higher at Rs.3235.85, hitting the UC of the day where it now remains frozen.

The stock price has reacted to its announcement that it has approved divestment of its healthcare services business to to funds affiliated with Baring Private Equity Asia at an enterprise value of $1.2 billion or around Rs.9,000 crore.

This unit contributed around 53% of the Hinduja Global’s consolidated revenue in FY21.

This transaction is expected to be completed within 90 days, subject to shareholder and other regulatory approvals.

Once this is completed, Hinduja Global will transfer all client contracts, employees, and assets, including infrastructure related to the healthcare services business, and will focus on strengthening its consumer engagement solutions, HGS Digital and human resource outsourcing and payroll businesses.