acquisitions have already been made. The aim is to deliver superior customer
experiences at scale in every area of its business, which will lead to significant revenue
and profit streams soon.
Your company sought to bring all digital businesses under one roof to have both India
play and the global business suite complement each other. During FY2023, your Company
successfully concluded the acquisition of the digital media business of NXTDIGITAL
Ltd (NDL), which has enabled the establishment of a direct-to-consumer practice for
HGS. As part of the Scheme of Merger, 1.0689 crore shares were allotted to NDL
shareholders on November 25, 2022, while the share capital of HGS increased from Rs. 417.9
million to Rs. 524.8 million and NDL shareholders were allotted around 20.4% of shares of
HGS.
NXTDIGITAL's merger boosts HGS' digital presence in India, adding over 1,200
people, higher India-originated revenue, a presence in over 4,500 pin codes and an
opportunity to be right in the centre of the world's biggest digital transformational
market.
This is the first of the many advantages to follow as the synergies between the two
businesses increase over time.
Creating Shareholder Value
Your company's philosophy revolves around creating value for all stakeholders. Last
year, when the healthcare business was divested, all shareholders were suitably rewarded
through special dividends,
Rights Issue, and a Share-Buyback worth Rs 10,200 million • Rs 1,700/ share.
HGS continues to transform itself. With many initiatives underway as part of this
transformation, I am confident that it would result in value accretion for all
stakeholders resulting in more opportunities for shareholders to be rewarded at opportune
times in the future.
I want to place on record my sincere appreciation of the unstinted support from all the
shareholders, directors, management, employees, clients, partners, advisors and the
government to the company all these years. Moving forward, we count on your continued
support as your Company strives to progress further in its evolution towards becoming a
digital-first CX organization.
I would conclude by wishing you all good health. May we all remain more connected!
Yours sincerely,
Ashok P. Hinduja
Chairman, HGS