Hexaware bounces back, up nearly 16%
After getting badly written down by the market Monday, shares of Hexaware Technologies bounced back to regain lost ground on Tuesday.
By INDIATIMES NEWS NETWORK |
MUMBAI: After getting badly written down by the market Monday, shares of Hexaware Technologies bounced back to regain lost ground on Tuesday.
At 11:23 am, the share was at Rs 85.25, up 15.67 per cent or Rs 11.55. It touched a high of Rs 85.80 while the low was Rs 71.10. Traded volume was 15,04,703 shares.
The stock had reacted sharply to reports that the company had appointed a special committee to conduct an internal investigation to check certain actively concealed and potentially fraudulent foreign exchange option transactions conducted by one of its official. The official who exercised unauthorised fiduciary powers was suspended.
The company is likely to see losses between $20-25 million as a result of these transactions.
“It was a one-off incident and profits for the first nine months will be wiped off. However, it won’t affect company’s cash flows in FY08. Looking forward, there doesn’t seem to be a much of problem. There was value buying in late evening trade on Monday and today morning. Hammering was more than the fundamentals,” said an IT analyst with a local brokerage.
On Monday the share had plunged 17 per cent to Rs 73.70 following an announcement by the company to the exchanges about the fraudulent forex transactions.
At 11:23 am, the share was at Rs 85.25, up 15.67 per cent or Rs 11.55. It touched a high of Rs 85.80 while the low was Rs 71.10. Traded volume was 15,04,703 shares.
The stock had reacted sharply to reports that the company had appointed a special committee to conduct an internal investigation to check certain actively concealed and potentially fraudulent foreign exchange option transactions conducted by one of its official. The official who exercised unauthorised fiduciary powers was suspended.
The company is likely to see losses between $20-25 million as a result of these transactions.
“It was a one-off incident and profits for the first nine months will be wiped off. However, it won’t affect company’s cash flows in FY08. Looking forward, there doesn’t seem to be a much of problem. There was value buying in late evening trade on Monday and today morning. Hammering was more than the fundamentals,” said an IT analyst with a local brokerage.
On Monday the share had plunged 17 per cent to Rs 73.70 following an announcement by the company to the exchanges about the fraudulent forex transactions.
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