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*Alert against fake news- HGS:*


Fraudsters on Chittorgarh and Moneycontrol are spreading fake news that the buyback will be cancelled. There is no such reason for the buyback to be cancelled. This kind of fake news is often being spread by those who want to make money through illegitimate means. The company fulfils all conditions for a successful buyback offer to be done- debt- equity ratio under 2:1, percentage of reserves utilised under 25%, approval of shareholders has been taken.

Hinduja Global Solutions is a part of Hinduja Group of Companies- one of the largest business corporate in India. The company regularly pays dividends to investors. In the last one and a half years has paid more than Rs. 200 as dividend.

The fall in price can be attributed to a large buyback reaching ex date. On the first day only, it fell 15%. Further, there has been selling in IT and midcap shares.

SEBI processes take time, as can be seen in the last buyback of Triveni where letter of offer came after 50 days of record date. In this case, there were 5-6 public holidays due to which the process slowed down. As per communication shown on SEBI website, there has been 4 times conversation between the merchant banker and SEBI in the last 3 weeks.
In fact, even if the buyback does not go through, the planned 15% equity dilution of company will not happen- Rs. 1200 Cr. of company will retain with it which it otherwise was to distribute, so the stock will rally either way.

So, sit tight and wait for the good news to arrive!

Bro, price WILL fall for sure.
Even after buyback,
Just look at valuations
But don't get blinded by stock rigging.
Do you think, anyone of us is using product or service of this company directly or indirectly?

The fair price will be below 400₹
Accept that you are in loss,
Buyback was announced at 1400₹ market price. Buyback price was 1700₹
So even if AR is 50%, you are at loss, despite money being locked into it for 6 months.

If share price will fall, AR cannot be high, because all those trapped badly will tender upto their full entitlement. So expect AR to be close to ER, which I expect to be near 20-30%.
And share price can go even below 400₹, calcilate your losses if this happens!
If one big investor will start selling, then it's smart for everyone to sell. Only people waiting for buyback will get trapped.
Kyunki company ki value hi below 3000 Cr ki h (share price below 400)

I don't think buyback will get cancelled
Agreed, that some may be manipulating you to sell.
But you too, please don't give false hopes to retailers. Buyback ke baad bhi most of who held shares will be in loss only.

DISCLAIMER: this is just my opinion for educational purpose. You do whatever you think is right.

I am currently not invested in HGS.
Had sold on record date at 1240₹