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GA to invest $68.18M in Hexaware
By agencies
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Tuesday, 21 March 2006, 20:30 IST
MUMBAI: Global private equity firm General Atlantic (GA) has agreed to invest $68.18 million in Hexaware Technologies Ltd in the form of equity and optionally convertible preference shares.
As per the agreement between both the companies, the allotment of shares to GA will amount to 14.99 percent of the equity stake in Hexaware after conversion. The deal yields a capitalization of $454.54 million for Hexaware post investment.
GA will acquire 1.057 crore equity shares of Hexaware for $34.13 million and 1.056 million optionally convertible preference shares for $34.09 million. The preference shares shall carry a coupon rate of 2.95 percent for the first 18 months, the company statement said.
In case the conversion option is not exercised, the shares shall carry a coupon rate of five percent thereafter. For Hexaware, this investment marks a fundamental shift in its growth strategy the company, which has until now shied away from inorganic growth is now ready to consider it.
Until recently, Hexaware wanted to grow only the organic way, said Atul Nishar, Chairman, Hexaware Technologies. "GA's entry coincides with Hexaware's change of approach in this matter. Funding is not the main purpose of this placement. GA has an excellent network of relationships with invested companies. We hope to leverage this expertise to grow our business further."
GA's global footprint, particularly in the U.S., Germany, and China will be of key importance to Hexaware, said Rusi Brij, Vice-Chairman and CEO, Hexaware Technologies.