Hexaware Technologies, a leading player in the IT services sector, is set to launch its much-anticipated initial public offer (IPO) this week, raising Rs 8,750 crore. This article delves into everything investors need to know before subscribing to the Hexaware Technologies IPO, including the pricing, valuation, subscription timeline, and what makes this IPO stand out.
Hexaware Technologies IPO: An Overview
Hexaware Technologies is all set to make a splash in the primary market with its initial public offering (IPO). The company, backed by the Carlyle Group, has garnered significant attention due to its strong market presence and potential for future growth. Investors looking to diversify their portfolios should be keen to explore this opportunity. But before diving in, let’s break down the key details of the Hexaware IPO.
Hexaware Tech IPO: The Price Band
Hexaware Technologies has set the price band for its IPO at Rs 674 to Rs 708 per share. This price range is crucial for prospective investors, as it will determine how much they’ll need to pay per share when subscribing. It’s essential to understand how this price compares to the company’s financials and industry peers to make an informed investment decision.
The Issue Size: A Closer Look
The IPO’s total issue size stands at an impressive Rs 8,750 crore. This makes it one of the largest IPOs in India’s IT services sector in recent years. The money raised will primarily go to the selling shareholder, Carlyle Group, as this is an Offer-for-Sale (OFS) issue, with no fresh issuance of shares by the company itself.
Important IPO Dates: When Can You Subscribe?
Mark your calendars because the Hexaware Tech IPO will open for public subscription from February 12 to 14, with the anchor investors having a one-day window on February 11 to submit their bids. These dates are crucial for those interested in securing a slice of this significant IPO.
Company Valuation: How Big is Hexaware?
At the top end of the price band, Hexaware Technologies is valued at over Rs 43,000 crore, making it one of the largest IT companies to launch an IPO. This valuation reflects the strong market potential and solid financial performance of the company, with a growing customer base that includes several Fortune 500 companies.
IPO Structure: Offer-for-Sale (OFS)
The Hexaware IPO is structured as an Offer-for-Sale (OFS), meaning that the existing shareholders, including CA Magnum Holdings, will be selling their shares to the public. This structure is noteworthy because it doesn’t involve the company raising fresh capital through the issue of new shares.
What Are the IPO Proceeds?
Since the entire Hexaware Tech IPO is an Offer-for-Sale (OFS), the proceeds from the IPO will not go to the company but instead to CA Magnum Holdings, the promoter entity. This makes the IPO different from other offerings, where proceeds are used by the company for expansion, debt reduction, or other corporate needs.
Largest IPO in IT Services Since TCS
Hexaware Technologies’ IPO is being billed as the largest public offering in the Indian IT services sector in over two decades. The IPO is expected to surpass the Rs 4,700 crore IPO of Tata Consultancy Services (TCS), making it a significant event in the Indian stock market.
Hexaware Technologies: A Leading IT Services Provider
Hexaware Technologies is a global leader in digital transformation, focusing on services powered by artificial intelligence (AI). With a diverse clientele, including 31 Fortune 500 companies, Hexaware serves regions across the Americas, Europe, and Asia-Pacific. The company is well-positioned to benefit from the increasing demand for digital and AI-driven services across industries.
Hexaware IPO GMP: Current Market Trends
According to market observers, the Grey Market Premium (GMP) for Hexaware shares is currently flat. This means that there isn’t much upward or downward movement in the price of the shares in the grey market, which could signal mixed investor sentiment.
Key Financials: A Snapshot of Performance
As of September 2024, Hexaware Technologies reported a net profit of Rs 853.3 crore, with revenues of Rs 8,820 crore. These strong financials, coupled with the growing demand for digital services, have made the IPO attractive to investors looking for companies with solid earnings potential.
The Allotment and Listing Dates
The final allotment of shares for the Hexaware IPO is expected to take place on February 17, with shares listing on both the BSE and NSE on February 19. These dates are essential for investors as they mark when they will know whether they’ve secured shares in the IPO.
FAQs About Hexaware Technologies IPO
1. What is the price band for Hexaware Technologies IPO?
The price band for the Hexaware Technologies IPO has been set at Rs 674 to Rs 708 per share.
2. What is the size of the Hexaware Technologies IPO?
The total issue size is an impressive Rs 8,750 crore.
3. When will the Hexaware IPO open for subscription?
The Hexaware IPO will open for public subscription from February 12 to 14, with the bidding for anchor investors opening on February 11.
4. Is Hexaware Technologies IPO an Offer-for-Sale (OFS)?
Yes, the Hexaware IPO is an Offer-for-Sale (OFS), meaning the proceeds from the IPO will go to the selling shareholders, not the company itself.
5. How is Hexaware Technologies valued in the market?
At the upper end of the price band, Hexaware Technologies is valued at over Rs 43,000 crore.
6. When will the Hexaware shares be listed?
The Hexaware shares will be listed on the BSE and NSE on February 19.
Conclusion: Should You Subscribe to Hexaware Technologies IPO?
The Hexaware Technologies IPO presents an exciting investment opportunity for those looking to gain exposure to the IT services sector, particularly in digital transformation and AI-driven services. With a strong valuation, impressive financials, and the backing of the Carlyle Group, Hexaware is poised for future growth. However, potential investors should carefully assess the price band and IPO structure before making any decisions.
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