Hexaware Technologies launched its ₹8,750 crore initial public offering (IPO) on February 12, 2025, with a price band of ₹674-708 per share. The IPO is an Offer-for-Sale (OFS) by promoter CA Magnum Holdings, affiliated with The Carlyle Group. The issue will close on February 14, 2025.
Day 1 Subscription Status (as of 5 PM)
- Overall Subscription: 3%
- Retail Investors: 4%
- Non-Institutional Investors (NII): 1%
- Qualified Institutional Buyers (QIBs): 4%
- Employees: 11%
Anchor Investors: Hexaware raised ₹2,598 crore from anchor investors like SBI MF, HDFC MF, ICICI Prudential, Kotak MF, and global players like Goldman Sachs and Abu Dhabi Investment Authority.
Company Overview
Hexaware Technologies is a global IT services provider specializing in AI-led digital solutions, cloud computing, automation, and data analytics. It serves 31 Fortune 500 companies across sectors like financial services, healthcare, manufacturing, high-tech, banking, and travel.
Financial Performance
- Revenue CAGR (FY21-24): 17.9%
- PAT CAGR: 15%
- EBIT Margin: Stable
- Cash Balance (Sep 2024): ₹1,346 crore
Valuation
- P/E Ratio: 43.1x (Upper band)
- Post-issue Market Cap: ₹43,024.7 crore
- Return on Net Worth: 22.8%
Growth Strategy
- AI platforms like RapidX, Tensai, Amaze
- Geographic expansion into untapped markets
- Client acquisitions focusing on large contracts
- Product innovation, cloud solutions, M&A opportunities
Key Risks
- Revenue Concentration: 73% from Americas, 21% from Europe
- Currency Fluctuations
- Economic Slowdowns in key markets
Brokerage Recommendations
Leading firms SBI Securities, Anand Rathi, Nirmal Bang, Canara Bank Securities, Indsec and others recommend ‘SUBSCRIBE’ for long-term gains, citing growth prospects, stable margins, and AI-led platforms.
Grey Market Premium (GMP)
The GMP stands at ₹3.5, indicating a possible listing price of ₹711.5, reflecting a slight premium of 0.49% over the upper price band.
Key Dates
- Allotment Finalization: February 17, 2025
- Refunds: February 18, 2025
- Listing: February 19, 2025 (BSE & NSE)
Lead Managers
Kotak Mahindra Capital, Citigroup, JP Morgan, HSBC, IIFL Capital are the lead managers for the IPO.
Investors are advised to review financials and growth prospects before investing, though analysts remain positive on the company’s future due to AI-driven solutions and digital transformation demand.
