Hexaware Technologies, a leader in global digital and technology services, is making its mark with an upcoming Initial Public Offering (IPO). This IPO offers investors an opportunity to be part of a fast-growing tech company deeply embedded in artificial intelligence (AI). The IPO opens on February 12, 2025, and closes on February 14, 2025, and is expected to list on the BSE and NSE on February 19, 2025.

Hexaware Technologies IPO Overview

The Hexaware Technologies IPO offers a total issue size of ₹8,750 crores, comprising an offer for sale of 1,235.87 lakh shares. The price band is set between ₹674 and ₹708 per share, which places the company's market capitalization at ₹43,024.78 crores at the upper end of the price band. Retail investors can apply for a minimum of 21 shares (worth ₹14,868), while High-Net-Worth Individuals (HNIs) need to apply for a minimum of 14 lots (294 shares), amounting to ₹2,08,152.

Subscription Period & Allotment Details

The subscription period for Hexaware Technologies IPO is open from February 12, 2025, to February 14, 2025. The allotment process is set to be completed by February 17, 2025, and the final list of allotments will be available on the KFin Technologies website. Retail investors have the opportunity to track the IPO allotment status online.

Market Insights: GMP and Anchor Investors

The Grey Market Premium (GMP) for the Hexaware Technologies IPO currently stands at ₹0. This suggests no immediate listing gain expectations. However, GMP is an unofficial market estimate and does not guarantee any price discovery before the official listing.

In addition, the IPO has raised ₹2,597.99 crores from anchor investors at the upper price band of ₹708 per share. A total of 3,66,94,914 equity shares were allocated to these investors, signaling strong institutional interest. This could potentially lead to a stable listing once shares hit the exchanges.

Financial Performance & Valuation

Hexaware Technologies has shown consistent growth in recent years, with revenues of ₹88,713 million for FY24. The company's profitability is evident in its EBITDA of ₹13,911 million for FY24. Their Profit After Tax (PAT) stands at ₹8,533 million for the same period. The price-to-earnings ratio (P/E) stands at 43.14x, which is below the industry average of 55x, indicating that the IPO might be priced competitively.

Objectives of the IPO

The main objective of the Hexaware Technologies IPO is to provide liquidity to existing shareholders through an offer for sale. The company will not receive any proceeds from this IPO. Instead, all the funds raised will be directed to the promoter selling shareholders. The listing of Hexaware Technologies on the BSE and NSE will not only enhance the company’s visibility but also provide the market with an opportunity to trade in its shares.

How to Apply for the Hexaware Technologies IPO

To apply for the Hexaware Technologies IPO, investors must have a Demat account. Retail investors can apply online through their broker’s platform or directly through the BSE’s and NSE’s IPO platforms.

• Retail Investors can apply for a minimum of 21 shares.
• HNIs must apply for at least 14 lots (294 shares).

Note: Ensure that you have the necessary funds in your bank account before applying for the IPO.

For more details, you can explore the IPO list here.

Should You Invest in Hexaware Technologies IPO?

With its focus on AI-powered digital transformation solutions, Hexaware Technologies represents a solid growth opportunity. While the IPO is fully priced, the company’s financial stability and growth trajectory make it an attractive long-term investment for those willing to hold post-listing. However, considering the zero GMP, short-term gains may not be significant.

Investors should evaluate their investment goals before making a decision. Given the competitive P/E ratio, this IPO might be suitable for long-term investors looking to invest in a tech company poised for growth in the AI and digital transformation space.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipments, 

The Current active IPO are PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, Ajax Engineering, L.K. Mehta, Shanmuga Hospital.

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