The initial public offer (IPO) of Hexaware Technologies received muted response on day one with an overall subscription of 0.04 times. The retail investors segment received 0.04 times subscription, QIB subscribed 0.04 times, and non-institutional investors portion is booked 0.01 times on February 12, 2025. Meanwhile, the employee quota is booked 0.11 times.
The company came into existence in 1992 and based in Navi-Mumbai. It specializes in AI-powered automation, enterprise platform services, and enterprise platform services. Its rival companies include Coforge, LTIMindtree, and Persistent Systems, among others.
The public issue of Hexaware Technologies is an offer-for sale (OFS) of approximately 12,35,87,570 equity shares by promotor CA Magnum Holdings. Prior to the IPO, the company managed to raise 2598 crore from anchor investors as it has allocated nearly 1,31,55, 849 shares at Rs 708 per share.
It worth mentioning here that promoter Carlyle will reportedly offload its stake. The stake of Carlyle will come down to 74.1% from existing 95%. Interestingly, US private equity company Carlyle had invested $3 billion in Hexaware Technologies way back in November 2021.
Hexaware Technologies GMP
The latest GMP or Grey Market Premium of the IPO is Rs 3, as per latest update available at 10:30 pm today. With price band of Rs 708 apiece, the IPO’s likely listing is Rs 711 (cap price + latest GMP). The likely percentage gain or loss per share is 0.42%. The GMP of Hexaware Technologies witnessed steep correction as the GMP was reportedly Rs 20 when the issue was officially launched.
Price Band
The Rs 8,750 crore initial public offer set the price band of Rs 675-Rs 708 per share.
It is important to note that Hexaware Technologies’s initial public offer would be largest in India’s IT sector since TCS’s more than Rs 4,700 crore IPO. The previous promoter of Hexaware Technologies, Baring Private Equity Asia had delisted it in 2020. Nearly one-year post delisting, Carlyle Group acquired Baring Private Equity’s stake in the firm in 2021.
Meanwhile, investors can apply for a minimum of 21 equity shares and its multiple thereafter. Minimum investment amount necessary by retail investors would be Rs 14,868. On the other hand, the minimum lot size investment for sNII or small non-institutional investor will be 14 lots or 294 shares worth Rs 2,08,152 and for bNII or big non-institutional investors, it will be 68 lots or 1428 shares worth Rs 10,11,024.
Hexaware Technologies IPO Allotment
As per reports available, allotment of Hexaware Technologies IPO will be completed by February 17, 2025. The IPO is scheduled to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) with the precise listing date set as February 19, 2025. The initiation of refunds will begin on February 18, 2025 and credit of shares to Demat will take place on February 18. The listing date is February 19, 2025.
Should You Subscribe?
Leading brokerage firm Geojit Financial Services assigned subscribe call for long term rating. Ventura Securities suggested subscribe and said, “compared to peers like Persistent Systems and Coforge, Hexaware has a moderate valuation.”
SMC Global Securities issued subscribe rating for long term. Anand Rathi also recommended subscribe rating. Meanwhile, Stoxbox said, “the issue is valued at 43.1 times P/E, which is relatively cheaper compared to its peers. We recommend a ‘subscribe’ rating for this issue.”
Hexaware Technologies IPO Book Running Lead Managers
It is worth mentioning that book running lead managers of the IPO are Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, HSBC Securities & Capital Markets Pvt Ltd, JP Morgan India Private Limited, and IIFL Securities. Meanwhile, the registrar of the issue is Kfin Technologies.
The company won’t get any proceeds from the issue instead the funds generated would be directed to the selling shareholders.
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