By Rajesh Kurup
Institutional investors dissented Hinduja Global Solutions’ (HGS) special resolution to hike intercorporate transaction limit to Rs 3,500 crore that came up for voting on February 11. HGS is the digital services arm of Hinduja Group.
The institutional shareholders voted against the special resolution with 67.69% of their total votes, which was conducted through a postal ballot, according to data collated by proxy advisory firm Institutional Investor Advisory Services India (IiAS).
“There was an investor pushback on the resolution for the increase in intercorporate transactions, with 67.8% of institutional shareholders voting against. HGS’ investors have been pushing the company to increase dividend pay-out after the sale of its healthcare unit. The company, on the other hand, is reported to be using the proceeds to buy NXT Digital from the promoter group and stepping up its incorporate limits — enabling it to lend more to group entities,” IiAS said.
On its part, IiAS had recommended voting against the special resolution, while it supported two ordinary resolutions.
Institutional shareholders approved HGS’ ordinary resolutions to issue bonus shares in ratio 1:1 was approved by 100% of votes, while another to increase authorised share capital to Rs 80 crore from Rs 27.65 crore was ascended with 99.40% of votes.
For the seven days beginning February 11, institutional investors favoured a total of 13 resolutions (including that of HGS) that came up for voting through postal ballots and National Company Law Tribunal meetings (NCM).
Indiabulls Real Estate’s resolution to merge NAM Estates and Embassy One Commercial Property Developments with itself was approved by 100% of institutional shareholders’ votes. Earlier in December, the National Company Law Tribunal (NCLT) directed the real estate firm to convene a shareholders’ meeting to seek their approval for the merger.
Fortis Healthcare’s resolution to avail a two-year inter-corporate loan up to `40 crore from its listed step-down subsidiary Fortis Malar Hospitals, and Easy Trip Planners’ issuance of bonus shares and Repco Home Finance seeking approval for continuation of director’s tenure were ascended with 100% of votes.
Four resolutions of Premier Explosives — appointment of TV Chowdary as MD, appointment, redesignation of directors and remuneration to a director — were also approved by the entire institutional shareholders’ votes.
Tata Consultancy Services’ plans to buyback 4 crore shares, which was ascended with 98.51% of votes, Minda Industries’ plans to merge Minda iConnect with itself (97.62%) and Aurobindo Pharma’s redesignation of director (95.28%) were other resolutions approved during the week.