Hinduja Global Solutions Limited: rewarding the shareholders

What is it about?

This case presents the dilemma faced by Partha DeSarkar, the Executive Director and Global CEO of Hinduja Global Solutions Limited (HGS), a leading company in business process management (BPM). The company would have surplus cash of about USD 1.2 billion from sale of its healthcare service businesses. A part of this cashflow was to be used for investing in the future growth and the company planned to distribute a part to its shareholders. The case provides an excellent opportunity to students to work out the best method for rewarding the shareholders. It allows the students to compare various methods of cash distribution. The students would be able to examine in detail the process involved, the quantum of distribution, tax implications, financial implications, and valuation impact of available options.

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