Introduction to Hexaware Technologies IPO
The Hexaware Technologies IPO is grabbing the attention of investors as it prepares to open on February 12, 2025. This offer marks a significant milestone, with a price band set between ₹674 and ₹708 per share. The IPO is a complete offer-for-sale (OFS) of 12,35,87,570 equity shares, totaling a massive ₹8,750 crore. Investors are closely watching the Grey Market Premium (GMP), as it offers insight into market sentiment and potential listing gains. Let’s dive into a detailed analysis of this exciting opportunity.
Hexaware Technologies IPO Key Details
- IPO Opening Date: February 12, 2025
- IPO Closing Date: February 14, 2025
- Price Band: ₹674-₹708 per share
- Total Offer Size: ₹8,750 crore (entirely OFS)
- Lot Size: 21 shares
- Listing Date (Tentative): February 19, 2025
Hexaware Technologies IPO: Grey Market Premium Analysis Today (11-02-2025)
The Grey Market Premium (GMP) for the Hexaware Technologies IPO on February 10, 2025, was ₹8. This modest premium indicates a potential listing price of ₹716 per share, showing a more cautious market outlook compared to earlier days, when the GMP peaked at ₹19-20. Understanding the dynamics of GMP is crucial for making informed investment decisions.
Understanding the Grey Market Premium (GMP)
The Grey Market Premium (GMP) is a key metric for IPO investors. It reflects the price at which IPO shares are traded in the grey market before being officially listed. While not an official price, the GMP gives investors an early sense of how the market might value the stock once it begins trading on the exchanges.
How GMP Affects Investor Sentiment?
Investor sentiment plays a significant role in driving the GMP. When demand for an IPO is high, the GMP typically rises. A higher GMP suggests a more positive outlook for the listing day, while a lower GMP may indicate a more cautious approach by investors.
Why GMP Matters for Investors?
- Early Indicator of Potential Listing Gains: GMP acts as a preview for how the stock might perform once it gets listed.
- Market Sentiment: It offers a glimpse into the current mood of retail and institutional investors.
- Unpredictability: GMP can fluctuate based on external factors like market conditions, investor interest, and company performance.
Factors Influencing the GMP
Several factors can cause the Grey Market Premium (GMP) to fluctuate, and understanding these factors can help investors gauge the potential of the Hexaware Technologies IPO.
1. Investor Sentiment
Investor enthusiasm is often the primary driver of the GMP. When demand for an IPO is high, the GMP tends to rise.
2. Market Conditions
Overall market conditions, such as the performance of major indices and global economic trends, also impact GMP. Bullish markets generally see higher premiums.
3. Company Performance
The financial health of the company issuing the IPO directly influences GMP. Strong performance in sectors like IT, fintech, or healthcare can lead to a positive sentiment and a higher GMP.
4. Subscription Levels
Subscription levels during the IPO bidding process play a crucial role. A highly subscribed issue typically sees a higher GMP.
Allocation of Shares in the Hexaware Technologies IPO
Understanding how the shares are allocated can provide a clearer picture of investor access and distribution.
Breakdown of Share Allocation
- 50% to Qualified Institutional Buyers (QIB): These are typically large investors, such as mutual funds and insurance companies.
- 35% to Retail Investors: This portion is meant for individual investors who can bid for a minimum lot size of 21 shares.
- 15% to Non-Institutional Investors (NII): High-net-worth individuals and corporate investors fall under this category.
- Employee Discount: Employees of Hexaware Technologies have access to ₹67 off per share, with ₹900 million worth of shares allocated for them.
Offer for Sale (OFS) Details
The Hexaware Technologies IPO is a complete Offer for Sale (OFS), meaning that the company itself will not receive any proceeds from the sale of shares. The offer is being made by CA Magnum Holdings, a part of Carlyle Group Inc., which holds a substantial stake in Hexaware Technologies.
After the IPO, CA Magnum’s stake will decrease from 95.03% to 74.1%.
How to Apply for the Hexaware Technologies IPO?
Investors can apply for the Hexaware Technologies IPO through various online platforms, including Zerodha, Upstox, and Groww. The application process is streamlined via the ASBA (Application Supported by Blocked Amount) system, which blocks the necessary amount in the investor’s bank account until the allotment process is completed.
Minimum Investment for Retail Investors
The minimum investment amount for retail investors is ₹14,868, which corresponds to one lot of 21 shares at the price band of ₹674-₹708 per share.
Tentative Listing Date
The tentative listing date for the Hexaware Technologies IPO is February 19, 2025. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Historical Context of Hexaware Technologies IPO
Hexaware Technologies is making its return to the public markets after being delisted in November 2020. Previously, the company was listed in June 2002 before being taken private by Bearing Private Equity Asia. This marks the second public listing for Hexaware Technologies.
About Hexaware Technologies
Founded in 1990, Hexaware Technologies is a global IT and business process outsourcing company that offers services in industries such as financial services, healthcare, insurance, and manufacturing. The company’s technological expertise, including AI and automation solutions, has earned it a strong reputation among clients, including 31 Fortune 500 companies.
Global Presence
Hexaware has a robust presence in multiple regions, including North America, Europe, and the Asia-Pacific (APAC) regions. With over 31,870 professionals across 28 countries, Hexaware is a key player in the IT and outsourcing industry.
Financial Performance of Hexaware Technologies
Hexaware has consistently delivered strong financial performance, with impressive growth driven by technological innovation and a diverse portfolio of services. Its strong market position and global operations make it a promising candidate for IPO investors.
Frequently Asked Questions (FAQs)
1. What is the Grey Market Premium (GMP) of the Hexaware Technologies IPO?
As of February 10, 2025, the GMP of the Hexaware Technologies IPO is ₹8.
2. What is the price band for the Hexaware Technologies IPO?
The price band for the Hexaware Technologies IPO is set between ₹674 and ₹708 per share.
3. How can I apply for the Hexaware Technologies IPO?
Investors can apply for the IPO through platforms like Zerodha, Upstox, and Groww, using the ASBA process.
4. When is the tentative listing date for the Hexaware Technologies IPO?
The tentative listing date is February 19, 2025.
5. How much should a retail investor invest for the Hexaware Technologies IPO?
The minimum investment for retail investors is ₹14,868 for a lot of 21 shares.
6. Who is offering the shares in the Hexaware Technologies IPO?
The shares are being offered by CA Magnum Holdings, a part of Carlyle Group Inc..
Conclusion
The Hexaware Technologies IPO presents an exciting opportunity for investors, especially those looking to gain exposure to the booming IT and technology sector. While the current Grey Market Premium signals cautious optimism, the IPO’s fundamentals and the company’s strong global presence make it a worthy consideration for long-term investors. However, as always, it is crucial to weigh the potential risks and rewards before making an investment.
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