Hexaware Technologies IPO opens today; GMP remains flat; should you apply?

Hexaware Technologies IPO opens today: Check price band, lot size, GMP, reviews, allotment date, listing date, and other details

Hexaware Technologies IPO: The initial public offering of IT services provider company Hexaware Technologies opens for public subscription today, February 12, 2025. With this, the company is planning to return to the D-Street following its delisting from the exchanges in September 2020. 

 

Hexaware Technologies IPO, estimated at Rs 8,750 crore, is also set to become the largest public offering by an Indian IT services company, eclipsing the record previously held by Tata Consultancy Services (TCS), which raised Rs 4,713 crore in 2004 from its public offering.

 

Here are the key details of Hexaware Technologies IPO:

 

Hexaware Technologies IPO size

 

The public offering of Hexaware Technologies is a complete offer for sale (OFS) of 123.6 million equity shares. According to the Red Herring Prospectus (RHP) filed by the company, CA Magnum Holdings, which holds 577,604,202 equity shares, representing 95.03 per cent of the company, is divesting its partial stake via the public offering.

 

Hexaware Technologies IPO price band, lot size

Hexaware Technologies has set the price band for the public offering at Rs 674-708 per share, with a lot size of 21 shares. Thus, investors can bid for a minimum of 21 shares and in multiples thereof.

 

At the upper end of the price band, to bid for one lot of Hexaware Technologies IPO, a retail investor would require Rs 14,868, comprising 21 shares. A retail investor can bid for a maximum of 13 lots, or 273 shares, with an investment amount of Rs 1,93,284.

 

Hexaware Technologies IPO grey market premium (GMP)

Ahead of the opening of the public offering, Hexaware Technologies' unlisted shares traded nearly flat in the grey markets. Sources tracking unofficial market activities suggested that the shares of Hexaware Technologies were trading at Rs 711.5 apiece in the grey market, reflecting a premium of merely Rs 3.5 or 0.49 per cent over the upper price band of Rs 708.

 

Hexaware Technologies IPO allotment, listing schedule

The three-day subscription window to bid for the Hexaware Technologies IPO is expected to remain available until Friday, February 14, 2025. Following the closure of the subscription window, the basis of allotment of Hexaware Technologies IPO shares is likely to be finalised on Monday, February 17, 2025. Successful allottees will receive the company’s shares into their demat accounts by Tuesday, February 18, 2025.

 

Shares of Hexaware Technologies are slated to list on the BSE and NSE tentatively on Wednesday, February 19, 2025.

 

Hexaware Technologies IPO registrar, lead managers

Kfin Technologies serves as the registrar for the public offering, while Kotak Mahindra Capital Company, Citigroup Global Markets India, J.P. Morgan India, HSBC Securities & Capital Markets, and IIFL Securities are the book-running lead managers.

 

Hexaware Technologies IPO objective

Since the public offering comprises an entirely offer-for-sale, Hexaware Technologies will not receive any proceeds from the offer. "All proceeds from the offer will go to the Promoter Selling Shareholder, in proportion to the equity shares offered by them in the Offer for Sale," said Hexaware Technologies in its RHP.

 

Hexaware Technologies IPO review

Hexaware Technologies has also garnered favorable reviews from the brokerages for its public offering.

  Should you subscribe to Hexaware Technologies IPO? 

Anand Rathi Research - Subscribe

Analysts at Anand Rathi Research have assigned a "Subscribe" rating to the Hexaware Technologies IPO, citing fair valuations. “Hexaware Technologies’ business has evolved over the last decade, with a growing set of offerings, a larger and diversified customer base, a wider global delivery footprint, and a higher focus on innovation and technology,” wrote the analysts in a research note.

 

Its expertise, analysts said, is further complemented by a mix of strategic and industry-focused partners, such as ServiceNow, which offers AI-powered solutions for various business functions, including human resources, IT, customer service, security, and finance, and Backbase, a banking financial technology company in the Netherlands.

 

At the upper price band, analysts said the company is valued at a P/E of 43.1x, with a market cap of Rs 43,024.7 crore post the issue of equity shares, and a return on net worth of 22.8%. “On the valuation front, we believe that the company is fairly priced. Thus, we recommend a ‘Subscribe’ rating to the IPO.”

 

Arihant Capital - Subscribe

Arihant Capital, in its research note, has also assigned a "Subscribe" rating to the public offering. According to the brokerage, Hexaware Technologies is ranked among the top 10 IT sector companies in India and is leveraging a strong global presence and networks in key markets in India, the US, and the UK. The company continues to innovate in AI technologies. The company’s revenue has increased, with a focus on maintaining profitability through efficient execution and cost management.

 

“At the upper band of Rs 708, the issue is valued at a P/E ratio of 37.82x, based on an annualised September 2024 EPS of Rs 18.72. We are recommending a ‘Subscribe for the long term’ for this issue,” said the brokerage in its research note.

 

SBI Securities - Subscribe for long-term

Analysts at SBI Securities have recommended that investors subscribe to the public offering from a long-term perspective. “The company is valued at a CY23/CY24E (annualised) P/E of 43.1x/37.6x, based on the upper price band and the post-issue capital, which, according to the analysts, is relatively cheaper than its peers. It has a diversified revenue mix in terms of industries. The company leverages AI to build solutions for its clients, driving improvement in productivity and gains in utilisation. It has a healthy cash balance of Rs 1,346 crore as of September 2024. We recommend subscribing to the issue at the cut-off price with a long-term investment horizon,” said the analysts.

 

About Hexaware Technologies

Hexaware Technologies is a global provider of digital and technology services, with a strong emphasis on artificial intelligence (AI)-driven solutions. The company integrates AI into its service offerings to assist enterprises in digital transformation, focusing on automation, cloud adoption, and operational optimisation. Its business is structured around key service areas: Design & Build, Secure & Run, Data & AI, Optimise, and Cloud Services. 

    Hexaware Technologies IPO