The highly anticipated Hexaware Technologies IPO is set to open tomorrow, February 12, 2025, with a massive issue size of ₹8,750 crore. This initial public offering (IPO) promises to capture the attention of investors eager to take a stake in one of India’s leading IT services and digital solutions companies. If you’re considering subscribing to this IPO, here’s everything you need to know before taking the plunge.
Hexaware Technologies IPO: A Quick Overview
Before we dive into the specifics, let’s take a glance at the key aspects of the Hexaware Technologies IPO. As one of the largest IPOs in India’s IT sector, it holds a lot of promise for investors. The IPO will open for subscription from February 12 to February 14, 2025, while anchor investors can place their bids starting from February 11.
The IPO is being offered entirely as an Offer For Sale (OFS) by existing shareholders, meaning the company will not raise fresh capital through the issue. Instead, all funds raised will be received by the selling shareholders.
Why Should You Consider Investing in the Hexaware Technologies IPO?
Hexaware Technologies has been a trusted name in IT services for years, serving top clients across the globe. Here’s a closer look at the factors that make this IPO noteworthy.
Subscription Timeline: When Can You Bid?
Hexaware Tech IPO Opening and Closing Dates
- Opening Date: February 12, 2025
- Closing Date: February 14, 2025
- Anchor Investors: February 11, 2025
These are the crucial dates to keep in mind when planning your investment. The process will begin with anchor investors, followed by the general public. So, make sure you’re prepared and ready to place your bids.
What Is the GMP (Grey Market Premium) Trend for Hexaware Technologies IPO?
Before the opening of the Hexaware Technologies IPO, the grey market premium (GMP) provides an early indicator of market sentiment. Currently, Hexaware IPO GMP is flat, with shares trading at a GMP of ₹3.5 in the grey market. This suggests that the listing price of the shares could be around ₹711.5 per share, which is a 0.49% premium over the issue’s upper price band of ₹708.
What Does This Tell Investors?
The flat GMP indicates a steady demand for Hexaware shares. It suggests that the market is relatively neutral about the listing price but remains optimistic about the IPO’s future performance.
Price Band and Offer For Sale (OFS) Structure
Hexaware Tech IPO: Price Band and Share Offerings
The price band for the Hexaware Technologies IPO has been set between ₹674 and ₹708 per share. This range is important for retail investors to understand, as it determines how much they will pay for each share.
- Upper Price Band: ₹708 per share
- Lower Price Band: ₹674 per share
Offer For Sale (OFS): No Fresh Capital Raised
The entire ₹8,750 crore issue consists of an OFS, which means that existing shareholders will be selling their shares in the company. This will not result in fresh capital being raised for Hexaware, so investors should keep in mind that no additional funds will be used for company expansion or other purposes.
Minimum Investment and Lot Size: How Much Do You Need to Invest?
Retail Investors
For retail investors, the minimum lot size is 21 shares, and the minimum investment starts at ₹14,154 at the lower price band of ₹674 per share, or ₹14,868 at the upper price band of ₹708 per share.
Non-Institutional Investors
- Small Non-Institutional Investors (sNII): Minimum investment of ₹2.08 lakh for 294 shares.
- Big Non-Institutional Investors (bNII): Minimum investment of ₹10.11 lakh for 1,428 shares.
Company Valuation and Financial Performance
Hexaware Technologies: Market Capitalization
At the upper price band of ₹708 per share, Hexaware Technologies is valued at over ₹43,000 crore. This gives potential investors an idea of the company’s market value at the time of listing.
Recent Financial Performance
For the nine months ending September 2024, Hexaware Technologies reported:
- Revenue: ₹8,820 crore
- Net Profit: ₹853.3 crore
These financial figures are a key indicator of the company’s current performance and stability in the competitive IT sector.
The Largest IPO in India’s IT Services Sector Since TCS
Hexaware’s IPO is a major event in the Indian IT services industry, as it is the largest IPO in this sector since Tata Consultancy Services (TCS) went public over two decades ago. This underscores the significance of Hexaware’s public debut and could potentially be a game-changer for both investors and the company.
Lead Managers and Registrars: Who’s Handling the IPO?
Who Are the Lead Managers?
Some of the most prominent names in investment banking are handling the Hexaware Technologies IPO, including:
- Kotak Mahindra Capital
- Citigroup Global Markets
- J.P. Morgan India
- HSBC Securities
- IIFL Securities
Who Is the Registrar?
The registrar for the Hexaware Technologies IPO is Kfin Technologies, which will manage the process of share allotment.
Global Presence and Strong Business Portfolio
Hexaware’s Business and Clients
Hexaware Technologies is renowned for its IT and digital services, with a strong focus on AI and automation. The company serves over 31 Fortune 500 companies across Americas, Europe, Asia-Pacific, and the Middle East.
Offshore Delivery Centers
Hexaware operates several major offshore delivery centers in cities like Chennai, Pune, Bengaluru, and Noida, and is expanding further into Tier 2 cities. The company’s global reach and diversified portfolio make it a formidable player in the IT services sector.
FAQs: All You Need to Know About Hexaware Technologies IPO
1. When does the Hexaware Technologies IPO open for subscription?
The 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 IPO is between ₹674 to ₹708 per share.
3. Who are the lead managers for the Hexaware IPO?
The lead managers include Kotak Mahindra Capital, Citigroup Global Markets, J.P. Morgan India, HSBC Securities, and IIFL Securities.
4. How much do retail investors need to invest?
Retail investors need to invest a minimum of ₹14,154 at the lower price band or ₹14,868 at the upper price band.
5. Is Hexaware’s IPO an Offer For Sale (OFS)?
Yes, the Hexaware Technologies IPO is an OFS, meaning no fresh capital will be raised by the company.
6. What is the market capitalization of Hexaware Technologies post-IPO?
At the upper price band, Hexaware is valued at over ₹43,000 crore.
Conclusion: Should You Subscribe to the Hexaware Technologies IPO?
The Hexaware Technologies IPO presents a significant opportunity for investors looking to capitalize on the growth of the IT and digital services sector in India. While it is a flat GMP ahead of the listing, the company’s strong global presence, impressive financials, and market leadership make it an appealing option. If you’re planning to subscribe, make sure you’re well-prepared and informed about the Hexaware IPO before you make your investment.
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