IT Stock Hinduja Global Solutions In Focus After Merger of US Subsidiaries Announced

On Tuesday, the stock of Hinduja Global Solutions Ltd, which is referred to as HGS, experienced an increase in price of about 1. 20 %. The stock was worth Rs 698 05 per share, going up from the previous close price of Rs. 689.85. The stock has a target range of 52 weeks high of Rs 1 011.85 and a low of 593. Furthermore, according to reports, this stock is 0.42 times greater than its book value of Rs 1,648 which indicates its strength. Hinduja has, in the recent past exhibited strength in their operations as evidenced by their good three-year return on equity ratio of 45.9 at times and a very good dividend policy of 21.1 times. Being a small-cap stock, the company has a market value that is above Rs 3,200 crore.

In a bid to improve its efficiency, Hinduja Global Solutions announced the merger of five wholly owned US subsidiaries, with HGS CX Technologies Inc. as its subsidiary. The subsidiaries involved are Hinduja Global Solutions LLC, HGS Digital LLC, HGS (USA) LLC, HGS Canada Holdings LLC and Teklink International LLC. The merger was approved by the board of directors of HGS CX Technologies Inc and is proposed to achieve a flatter organizational structure for improvement in efficiency. However, the merger will still be pending the required approvals in the relevant jurisdictions.

The firm made it clear that this restructuring will not impact its overall activities nor the shareholder structures of either Hinduja Global Solutions Ltd or HGS CX Technologies Inc. The restructuring also seeks to create a more streamlined and low-cost structure which is consistent with the company's long-term development prospects.

Hinduja Global Solutions Ltd has established itself as one of the major players in the business process management (BPM) market with an array of voice and non-voice services that include contact center and back-office transaction management. This business forms part of the multi-faceted Hinduja Group engaged in businesses like automobiles, information technology, media, and health business. HGS has about 200 thousand employees around the world.

HGS works through two major reportable business segments which are digital and business process management services where the company has markets in North America, Europe, Asia, and the Middle East. The latter works as a leading digital distribution business in India offering satellite, cable and broadband services to over 5000000 customers in 1500 plus cities and towns.

The announcement of this merger is a reflection of the continuous improvement and operational excellence embedded in the core of HGS and its locations this further boosts HGS as a leading global BPM.