Baring, which holds 62.34 per cent stake in the Navi Mumbai-based mid-tier IT services provider, offered to buy the remaining stake held by public shareholders for Rs 3193 crore ($424.6 million) at Rs 285 per share in June.
Earlier this month, a majority of the company's shareholders approved the proposal to delist Hexaware. The private equity firm might have to raise the offer price to Rs 400 per share to get investor interest in the delisting
process, Madhu Babu, analyst at Centrum Broking, wrote in a recent note.
The shares closed at Rs 421.50 per share on Friday, a 47.7 per cent premium to the indicative offer price.
The proceeds will also be used for repaying a $368 million 7 per cent senior secured bond which was originally due in July 2021. However, the borrower is exercising a call option that expires this month as a result of which it will repay around $385 million. Baring was not reachable for a comment.
Baring previously used LBO financing for Hexaware – a $185 million 5-year amortising loan in 2013 - for its initial purchase and a $250 million 5-year dividend recapitalisation in March 2015.