Date:11/04/2006 URL: http://www.thehindubusinessline.com/2006/04/11/stories/2006041102781500.htm

Back FIIs' stake in Hexaware Tech rises to 41.75 pc

Raja Simhan T E

Public shareholding decreases to 12.21 per cent

Stakeholders
New entrants among FIIs space are Goldman Sachs and Morgan Stanley
While Citigroup increases its stake, Deutsche reduces its holding

Chennai , April 10

Shareholding of foreign institutional investors (FIIs) in Hexaware Technologies Ltd increased by 5.22 percentage points to 41.75 per cent during the March quarter.

Public shareholding in the software company, on the other hand, reduced by 2.46 percentage points to 12.21 per cent, according to the company's latest shareholding pattern.

During the March quarter, Goldman Sachs Investments Mauritius and Morgan Stanley & Company International Ltd were the two new FIIs listed as having more than one per cent stake in the company.

Among the major FIIs, Citigroup Global Markets increased its stake by 1.02 percentage point to 7.86 per cent. However, Deutsche Securities reduced its stake to 2.33 per cent during March quarter from 3.82 per cent in the previous quarter, Hexaware's shareholding pattern available on the Bombay Stock Exchange Web site says.

Share price of Hexaware increased by about Rs 30 in the last three months to reach Rs 165 by the quarter end.

It may be recalled Hexaware announced that it has an order book of $40 million (about Rs 175 crore) acquired during the March quarter and a "strong win-rate" in the PeopleSoft space gives a renewed impetus to future growth. It also commenced work on phase one of its Chennai campus, which will house more than 3,000 software professionals and operational by first quarter of 2007.

The company in its guidance for first quarter said it expects a net profit of $5.4 million (about Rs 25 crore) on revenues (excluding PeopleSoft-India Services Centre) of $38.6 million (about Rs 170 crore).

The company also announced an agreement with General Atlantic LLC (GA) by which General Atlantic will invest Rs 300 crore through a preferential allotment. The proceeds of the allotment will be utilised to create infrastructure assets, enable suitable acquisitions and to meet working capital needs of the company, resulting in the long term sustained growth and also help the company to realise new growth opportunities.