Hexaware Technologies, one of India’s leading IT solutions providers, is gearing up for its initial public offering (IPO), which is set to launch on February 12. As this highly anticipated event unfolds, potential investors have their eyes set on crucial details like the price band, grey market premium (GMP), and other key information that will shape the future of the company. In this article, we will explore everything you need to know about the Hexaware Technologies IPO, from the open date to its market prospects, and why it has garnered significant attention in the market.
Hexaware Technologies IPO: What You Need to Know?
When is the Hexaware Technologies IPO Opening?
The Hexaware Technologies IPO opens on Wednesday, February 12, and closes on Friday, February 14, for subscription. This means investors have just a few days to apply for shares in this high-profile IPO.
What is the Price Band for the IPO?
The price band for the Hexaware Technologies IPO is set at Rs 675 to Rs 708 per share. The issue will be open for bidding in lots of 21 equity shares with multiples thereafter. Depending on demand and the price point, investors can expect different levels of returns.
What is the Grey Market Premium (GMP)?
Before the official launch of the Hexaware Technologies IPO, the stock was trading at a grey market premium (GMP) of around Rs 8 to Rs 10 per share. This suggests the company may have a flat listing with modest gains for investors at the higher end of the price band. This mild GMP indicates that the stock is likely to be listed at its upper price band.
What Are the Important Dates for Hexaware IPO Investors?
To help you plan ahead, here are the key dates related to the Hexaware Technologies IPO:
- IPO Opening Date: February 12
- IPO Closing Date: February 14
- Allotment Date: February 17
- Shares Credit Date: February 18
- Listing Date: February 19
Is Hexaware Technologies IPO Worth It?
Investors are eyeing the Hexaware Technologies IPO for its strong track record and impressive financials. The company’s valuation based on its price band is relatively lower than its peers, making it an attractive investment opportunity for long-term growth.
Company Overview: What is Hexaware Technologies?
A Brief History of Hexaware Technologies
Founded in 1992, Hexaware Technologies is based in Navi Mumbai, India, and specializes in providing global digital and technology services. The company has firmly established itself as a leader in artificial intelligence (AI) and technology solutions, helping businesses navigate the evolving digital landscape.
Hexaware’s Expertise and Services
Hexaware offers a wide range of technology services, such as:
- AI-powered digital solutions
- Cloud and data analytics services
- Business process outsourcing
- End-to-end technology integration
Hexaware Technologies’ Expansion Plans
The company has ambitious plans to expand its reach, with offshore delivery centers in India (Chennai, Pune, Bengaluru, Noida) and Sri Lanka. In addition, it has set its sights on Tier 2 cities like Ahmedabad for new growth centers.
Hexaware Technologies IPO: Offer for Sale (OFS) and Financials
Offer for Sale Details
The Hexaware Technologies IPO is an offer-for-sale (OFS) of 12,35,87,570 equity shares by its promoter, CA Magnum Holdings. This means the company won’t receive any proceeds from the IPO, and the entire process is designed for its existing shareholders to exit partially.
Financial Performance and Growth
Hexaware Technologies has seen impressive growth over the years, particularly in terms of revenue and profit. In the FY 2024, the company reported a net profit of Rs 997.6 crore and total revenue of Rs 10,389.1 crore. The company’s dollar revenue, rupee revenue, and profit after tax (PAT) have grown at CAGR rates of 14%, 20%, and 15% respectively over the past few years.
Valuation and Price Band
With a CY23/CY24E price-to-earnings (P/E) ratio of 43.1 times and 37.6 times (based on the upper price band), Hexaware is priced relatively cheaper compared to its peers in the tech sector.
Hexaware Technologies IPO: Share Allocation
Who Can Invest in the IPO?
The Hexaware Technologies IPO allocates shares as follows:
- 50% of the shares for qualified institutional bidders (QIBs)
- 15% for non-institutional investors (NIIs)
- 35% for retail investors
Special Reservation for Employees
Hexaware has reserved Rs 90 crore worth of shares for its eligible employees, offering them a discount of Rs 67 per share.
Market Prospects and the Future of Hexaware Technologies
What is Hexaware Technologies’ Market Capitalization?
The company’s estimated market capitalization post-IPO will be around Rs 43,025 crore. This positions Hexaware Technologies among the prominent players in the IT services sector in India.
What Are Analysts Saying About Hexaware Technologies?
Analysts from SBI Securities have recommended subscribing to the IPO at the cut-off price for long-term gains. They highlight the company’s diversified revenue mix, its ability to leverage AI, and its stable EBIT margin as key reasons to back this IPO.
Hexaware Technologies IPO: Key Takeaways
- IPO Opening Date: February 12, 2025
- Price Band: Rs 675 to Rs 708 per share
- GMP: Rs 8 to Rs 10 (suggesting flat listing gains)
- OFS: 12,35,87,570 shares for sale
- Market Capitalization: Rs 43,025 crore
- Employee Discount: Rs 67 per share
FAQs About Hexaware Technologies IPO
1. When is the Hexaware Technologies IPO open for subscription?
The Hexaware Technologies IPO opens for subscription on February 12, 2025, and closes on February 14, 2025.
2. What is the price band for the Hexaware Technologies IPO?
The price band for the Hexaware IPO is set at Rs 675 to Rs 708 per share.
3. What is the Grey Market Premium (GMP) for Hexaware Technologies?
The GMP for Hexaware Technologies IPO is around Rs 8 to Rs 10 per share, indicating moderate listing gains.
4. What is the company’s market capitalization post-IPO?
The market capitalization of Hexaware Technologies after the IPO is expected to be Rs 43,025 crore.
5. How many shares are being sold in the IPO?
A total of 12,35,87,570 equity shares will be sold in the Hexaware Technologies IPO as part of the offer-for-sale (OFS).
6. Who are the book running lead managers for the IPO?
The book running lead managers for the Hexaware Technologies IPO include Kotak Mahindra Capital, Citigroup Global Markets India, JP Morgan India, HSBC Securities, and IIFL Securities.
Conclusion: Should You Invest in the Hexaware Technologies IPO?
The Hexaware Technologies IPO presents a solid investment opportunity for those looking to gain exposure to the growing IT services and AI-powered solutions industry. With a reasonable price band, a discounted offering for employees, and strong financials, the IPO is likely to see a positive response from institutional and retail investors alike. However, as always, investors should evaluate their risk tolerance and investment goals before proceeding.
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