“The acquisition will provide significant enhancement of Tech Mahindra’s expertise in the customer management space and will be a key component of strategic plans going forward,” Tech Mahindra said in a statement
Software services major Tech Mahindra today announced the acquisition of Hutchison Global Services (HGS) for an upfront payment of $87.1 million (about Rs480 crore), reports PTI.
“Tech Mahindra announces the acquisition of 100% stake in Hutchison Global Services for $87.1 million, payable upfront,” Tech Mahindra said in a statement.
The acquisition will provide significant enhancement of Tech Mahindra’s expertise in the customer management space and will be a key component of strategic plans going forward, it added.
The deal will also enable Tech Mahindra to leverage the acquired capabilities and scale for expanding the scope of their existing services to other parts of the Hutchison group and to other customers and verticals, the statement said.
HGS, which provides customer lifecycle operations to clients in UK, Ireland and Australia, has over 11,500 employees. It operates out of Mumbai and Pune and is among the largest captives in the telecom domain.
“This acquisition is in line with our growth plans and is a logical next step in extending our relationship with Hutchison. We are committed to this opportunity and excited about the possibilities this acquisition opens up,” Tech Mahindra executive vice-chairman Vineet Nayyar said.
As part of the deal, clients of HGS have committed to procure services worth $845 million over a five-year period, and have agreed to HGS being their exclusive provider of certain agreed services in India.
“Hutchison’s focused service portfolio combined with our domain knowledge, geographic spread and execution excellence will help us become the undisputed leaders in this space, and extend these services to other verticals and markets,” Tech Mahindra managing director C P Gurnani said.
The market has settled into a low-range trading
Questions put to the finance minister on the manipulation in the F&O segment have been vaguely answered. Who is the ministry of finance looking to protect?
Rajeev Chandrasekhar, an independent Member of Parliament (MP) in the Rajya Sabha, recently asked a list of questions pertaining to the Futures and Options (F&O) segment to the finance minister. Most of the questions asked were related to the manipulation in the F&O segment. The questions asked were whether several dubious operator-driven stocks have crashed in response to SEBI’s recent decision to change the eligibility norms for the F&O segment. He also asked for the details of any enquiry made regarding dubious and poor quality stocks being added to the F&O segment.
It seems that the finance minister missed the point and replied that the average decline of the 51 stocks in three weeks from 23 July to 13 August “was only around 0.5% which cannot be termed as a crash warranting an enquiry.” But it’s not all the stocks put together that need to be scrutinised. It is individual stocks that crashed by more than 10% that should have fallen under their radar.
In the first week itself (23 July to 27 July) the 51 stocks which were common to both the NSE and the BSE crashed by an average of 5.95% with around 45 stocks in the red. Out of these, as many as 12 stocks had declined by more than 10% within the week. The Nifty remained flat during this period. Even in the period referred to by the finance minister, there were stock like S Kumars Nationwide and BEML which were down by nearly 30% and 20% respectively. And as many as 25 stocks were negative. Yet these stocks were overlooked. If such is the state of affairs in the ministry of finance, one cannot expect much from the exchanges or even the market regulator.
Moneylife has highlighted the brazen manipulation in creating the F&O list several times in the past. Even as the Securities and Exchange Board of India (SEBI) has stepped in to change the eligibility criteria for F&O nobody seems to have gone into what is, on paper, the role and responsibility of the stock exchanges. Indeed, in a supreme irony, while SEBI’s move is designed at checking manipulation by doing away with illiquid stocks, the bourses have either encouraged manipulation or turned a benign eye towards them.
Read our earlier articles on this:
SEBI slams down on F&O manipulation-I: What was NSE’s role all this while?
SEBI slams down on F&O manipulation-II: NSE and BSE as the first line of regulation stand exposed