Hinduja Global surges on the divestment of CRM business

Hinduja Global Solutions (HGS) has entered into a definitive agreement to sell its India domestic customer relationship management (CRM) business to Altruist India for Rs 40 crore. The company intends to consolidate its product offerings and focus on high-margin/premium services. The amount of cash consideration for the transfer will be around Rs 40 crore. In addition, the proceeds from working capital will accrue to the company. The transaction is expected to close by January 31, 2020 and is subject to necessary approvals.

The CRM business primarily comprises voice-based contact centre services and some non-voice services to domestic customers. Revenue from this business was Rs. 346 crore in FY19 and contributed nearly 7 per cent to consolidated revenue. Besides, Edelweiss Financial Services Limited acted as the sole financial advisor to HGS on the transaction.

HGS is a global leader in business process management (BPM) and optimizing the customer experience lifecycle. HGS provides technology-powered services in automation, analytics and digital with domain expertise focusing on back-office processing, contact centers, and HRO solutions to deliver transformational impact to clients.

Altruist Technologies Private Limited is a voice-based BPO company in India, servicing the Indian customers across verticals such as Telecom, Software, and Revenue Assurance.

The stock of Hinduja Global Solution surged nearly 6 per cent to touch intra-day high of Rs. 638.10 in today's trading session.