Hexaware Technologies Ltd, a prominent global provider of digital and technology services, has announced its Initial Public Offering (IPO) to raise approximately ₹8,750 crore. The IPO is scheduled to open on February 12, 2025, and close on February 14, 2025.

Company Overview

Established in 1992, Hexaware Technologies integrates artificial intelligence (AI) into its core operations, offering innovative solutions that assist clients in digital transformation and operational optimization. The company’s service offerings include:

• Design & Build
• Secure & Run
• Data & AI
• Optimize
• Cloud Services

Hexaware serves clients across various industries, including financial services, healthcare, insurance, manufacturing, consumer goods, high-tech, professional services, banking, and travel and transportation. The company operates in over 54 offices worldwide, employing approximately 32,000 professionals.

IPO Timeline

• Issue Open Date: February 12, 2025
• Issue Close Date: February 14, 2025
• Allotment Finalization: February 17, 2025
• Refund Initiation: February 18, 2025
• Shares Credited to Demat Accounts: February 18, 2025
• Listing Date: February 19, 2025

Price Band and Lot Size

• Price Band: ₹674 to ₹708 per equity share
• Face Value: ₹1 per share
• Lot Size: 21 shares
• Minimum Investment: ₹14,868

Investors can bid for a minimum of 21 equity shares and in multiples thereof.

Financials

Hexaware Technologies has demonstrated consistent financial growth over the past few years. The company’s revenue grew at a compound annual growth rate (CAGR) of 13.7% from FY2021 to FY2023, surpassing the global industry’s growth rate. In both 2022 and 2023, Hexaware’s revenues exceeded US$1,000 million.

Strengths

• AI-Driven Solutions: Hexaware leverages AI to build solutions for its clients, driving improvements in productivity and utilization.
• Diverse Clientele: The company serves a wide range of industries, providing resilience against sector-specific downturns.
• Global Presence: With operations in over 54 offices worldwide, Hexaware has a strong global footprint.
• Strong Financial Performance: The company has shown consistent revenue growth and maintains a healthy cash balance of ₹1,346 crore as of September 2024.

Risks

• Market Competition: The IT services industry is highly competitive, with numerous players offering similar services.
• Dependence on Key Clients: A significant portion of revenue may be derived from key clients; loss of such clients could impact financial performance.
• Currency Fluctuations: As a global company, Hexaware is exposed to risks associated with currency exchange rate fluctuations.

IPO Anchor Investors Details

Hexaware Technologies has raised ₹2,598 crore from anchor investors ahead of its IPO. The company allocated 3.66 crore shares at ₹708 each, the upper price band. Notable anchor investors include SBI Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mahindra Mutual Fund, and Aditya Birla Sun Life Mutual Fund.

IPO Promoter Holding

The promoter of the company is CA Magnum Holdings, an affiliate of The Carlyle Group. Prior to the IPO, the promoter holds a 95.03% stake in the company. Post-issue, the promoter’s shareholding will decrease proportionally to the shares sold in the offer for sale.

IPO Grey Market Premium (GMP)

As of February 12, 2025, the Grey Market Premium for Hexaware Technologies’ IPO is approximately ₹3.5, indicating a slight premium over the upper price band of ₹708 per share. It’s important to note that GMP is subject to change and may not accurately reflect the stock’s actual listing performance.

Final Thoughts

Hexaware Technologies’ IPO presents an opportunity to invest in a company with a strong track record in digital and technology services. The company’s focus on AI-driven solutions, diverse industry presence, and consistent financial growth make it an attractive prospect for investors. However, potential investors should consider the inherent risks associated with the IT services sector and conduct thorough due diligence before making investment decisions.