Hexaware Technologies, a renowned global digital and technology services company, is gearing up for its initial public offering (IPO), expected to open for subscription on February 12, 2025. With a focus on artificial intelligence (AI) and digital transformation solutions, Hexaware is bringing its technological innovations to a broader audience. This article will cover every essential aspect of the Hexaware Technologies IPO, from its price band to its financial performance, and provide insights into the market trends surrounding the offering.

Hexaware Technologies: A Leader in Digital Transformation

Hexaware Technologies is a global leader in providing AI-powered digital transformation solutions to its clients. With a deep-rooted focus on AI, the company aims to help businesses adapt and optimize in the AI-first era. The company's platforms and tools are designed to provide clients with innovative solutions that support growth and efficiency. Hexaware Technologies has steadily maintained a strong market presence with robust financial growth over the years.

Hexaware Technologies IPO Overview

Hexaware Technologies' IPO is a Book Built Issue, with an issue size amounting to ₹ 8,750 Crores. The offering will consist entirely of an Offer for Sale of 1,235.87 Lakh Shares, allowing existing shareholders to liquidate their stakes. The subscription period for the IPO will commence on February 12, 2025 and conclude on February 14, 2025. The lot size has been set at 21 shares, and investors can apply for a minimum of ₹ 14,868 (for retail investors).

The price band for the IPO is fixed between ₹ 674 to ₹ 708 per equity share, and the listing is expected to take place on February 19, 2025. Notably, Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities, and other lead managers are overseeing the IPO, while KFin Technologies serves as the registrar for the issue.

Hexaware Technologies Financial Performance

The company's financial performance has shown steady growth, which is crucial for assessing its market position and potential for future returns. For the fiscal year 2023, Hexaware Technologies recorded revenues of ₹ 1,03,891 Million, showing an increase from the previous years. Despite challenges in the global market, the company has maintained strong operational efficiency, which is reflected in its EBITDA and profit after tax (PAT).

• Revenue (FY 2023): ₹ 1,03,891 Million
• EBITDA (FY 2023): ₹ 15,899 Million
• Profit after Tax (FY 2023): ₹ 9,976 Million

For FY24, the pre-issue Earnings Per Share (EPS) stands at ₹ 16.41, while the post-issue EPS is expected to remain the same. With a P/E ratio of 43.14x, the company is well-positioned within the industry, especially when compared to the industry average P/E ratio of 55x.

IPO Subscription and Allotment Process

The Hexaware Technologies IPO will be open for subscription on February 12, 2025, and the allotment of shares is expected to be finalized by February 17, 2025. To check the allotment status, investors can visit the official registrar website and enter their application number, PAN, or DP Client ID.

Grey Market Premium (GMP) and Market Sentiment

As of now, the Grey Market Premium (GMP) for Hexaware Technologies IPO stands at ₹ 0, reflecting low market speculation about the offering. While the GMP can offer insight into investor demand, it is important to note that GMP trends are unregulated and do not always reflect the actual listing performance.

Key Takeaways

1. Hexaware Technologies is a prominent player in AI-driven digital solutions with consistent financial growth.
2. The IPO offers 1,235.87 Lakh Shares with a price band of ₹ 674 to ₹ 708 per share, available for subscription from February 12, 2025.
3. The company's pre-issue EPS is ₹ 16.41, and it operates at a P/E ratio of 43.14x, slightly below the industry standard.

For investors considering participation in the Hexaware Technologies IPO, it's important to analyze the company's financial metrics, the price band, and the overall market sentiment. Despite its solid growth trajectory, the GMP signals a cautious approach, suggesting that listing gains may not be guaranteed.

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