The Hexaware Technologies IPO officially opens today, February 12, 2025, and will close on February 14, 2025. This Book Built Issue is set to raise ₹8,750.00 Crores entirely through an Offer for Sale (OFS) of 1,235.87 lakh shares. The price band for the IPO is set between ₹674 and ₹708 per share. At the upper end of the price band, the market capitalization of Hexaware Technologies stands at a substantial ₹43,024.78 Crores.

The subscription for the IPO is open until February 14, 2025, and the allotment date is expected to be finalized by February 17, 2025. Shares will be listed on the BSE and NSE with a tentative listing date set for February 19, 2025.

Hexaware Technologies: A Glimpse Into the Company

Hexaware Technologies is a global leader in digital transformation and technology services, with artificial intelligence (AI) embedded at the heart of its solutions. The company offers innovative solutions to assist customers in navigating their digital transformation journeys and optimizing their operations. AI is integrated into each of their products, and they provide customers with a suite of platforms that enable them to innovate and adapt in today’s AI-first era.

Financial Performance and Key Metrics

Hexaware Technologies has demonstrated consistent revenue growth over the years. For the period ending September 30, 2024, the company reported revenue from operations of ₹88,713 million, a significant increase compared to the previous year. The EBITDA for the same period stood at ₹13,911 million, reflecting strong profitability.

The company’s Profit After Tax (PAT) for FY24 was ₹8,533 million, continuing its steady upward trend over the past several years. With these impressive financials, Hexaware Technologies has achieved a pre-issue EPS of ₹16.41, and a post-issue EPS of ₹16.41 for FY24. The pre-issue P/E ratio stands at 43.14x, with a post-issue P/E ratio also at 43.14x, which is relatively competitive compared to the industry average of 55x.

Other key metrics include an ROCE (Return on Capital Employed) of 29%, ROE (Return on Equity) of 22.6%, and RoNW (Return on Net Worth) of 23.6%.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for Hexaware Technologies IPO is currently reported to be ₹0, indicating no significant expected gains based on the current market trends. Since Grey Market Premium is speculative and unregulated, it should not be relied upon for making investment decisions.

As of February 12, 2025, at 1:00 PM, the live subscription status of the Hexaware Technologies IPO shows that the IPO is subscribed 0.01 times on its first day. Investors can continue to track this live subscription status for real-time updates.

IPO Objectives and Use of Proceeds

The primary objective of the IPO is to enhance visibility and brand presence for Hexaware Technologies, as well as to provide liquidity to the existing shareholders. However, it’s important to note that the company will not receive any proceeds from the Offer. All the proceeds will be directed to the Promoter Selling Shareholder.

IPO Review and Recommendation

Despite Hexaware Technologies' strong financial performance and impressive metrics, the Grey Market Premium suggests limited potential for listing gains. Given the valuation, the IPO appears to be fully priced. Therefore, for investors seeking short-term listing gains, this IPO may not be an ideal choice. However, long-term investors who are looking at steady growth in the tech sector may still find value in this offering.

In conclusion, while Hexaware Technologies offers solid financials, the lack of premium in the Grey Market and the high pricing make this IPO not attractive for short-term gains. We recommend that investors carefully assess their investment goals before participating.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipmwnt, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Ajax Engineering, Chandan Healthcare..

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