Hexaware Technologies is a global leader in digital and technology services, leveraging artificial intelligence (AI) to drive innovation in the digital transformation of businesses. The company offers cutting-edge AI solutions and has developed a suite of platforms and tools to enable clients to innovate, optimize, and adapt in an AI-first world.

The Hexaware Technologies IPO is a Book Built Issue offering a total of ₹8,750.00 crores, entirely comprising an Offer for Sale (OFS) of 1,235.87 lakh shares. The subscription period for this highly anticipated IPO opens on February 12, 2025, and closes on February 14, 2025. The allotment process is expected to be finalized on February 17, 2025, with the tentative listing date set for February 19, 2025.

Hexaware Technologies IPO Price and Market Cap

The price band for the IPO is set between ₹674 to ₹708 per equity share, and with the upper price band of ₹708, Hexaware's market capitalization at the IPO price will reach ₹43,024.78 crores. The lot size is 21 shares, and retail investors are required to make a minimum investment of ₹14,868, while High-Net-Worth Individuals (HNIs) must invest ₹2,08,152 for 14 lots (294 shares).

IPO Subscription and GMP Insights

As of February 14, 2025, the Hexaware Technologies IPO has been subscribed 0.37 times, indicating a lower-than-expected demand on the last day of subscription. The Grey Market Premium (GMP) for Hexaware Technologies is ₹0, signaling no significant pre-listing gains. This means that the IPO's market price is expected to align with the listing price, with no speculative premium anticipated in the grey market.

Hexaware Technologies IPO Financial Performance

Hexaware Technologies has demonstrated a solid financial performance in recent years. For the fiscal year ending September 30, 2024, the company posted revenues of ₹88,713 million, with an EBITDA of ₹13,911 million and a profit after tax (PAT) of ₹8,533 million. The company's growth has been consistent over the years, showing resilience even during market fluctuations.

Key financial metrics for Hexaware Technologies include:

• Pre-issue EPS: ₹16.41, Post-issue EPS: ₹16.41 (FY24).
• Pre-issue P/E ratio: 43.14x, Post-issue P/E ratio: 43.14x (Industry P/E: 55x).
• Return on Capital Employed (ROCE): 29.00%, Return on Equity (ROE): 22.60%, and Return on Net Worth (RoNW): 23.60%.

IPO Objectives and Use of Proceeds

The Hexaware Technologies IPO does not involve any new share issuance, meaning that the company will not receive any proceeds from the offer. All proceeds from the offer will go to the selling shareholders (the promoters). The primary objective of the IPO is to enhance the company's visibility, brand recognition, and liquidity in the public market, providing a platform for existing shareholders to exit partially.

Hexaware Technologies IPO Anchor Investors and Allotment Process

Hexaware Technologies has successfully raised ₹2,597.99 crores from anchor investors, with 3,66,94,914 equity shares allocated at ₹708 per share. This indicates strong institutional interest in the IPO, although retail interest remains moderate.

The IPO allotment date is set for February 17, 2025, and investors can check their allotment status on the registrar's website using their application number, PAN, or DP Client ID.

Investor Guidance

While Hexaware Technologies is a strong player in the digital and AI services space, the IPO’s low GMP and moderate subscription demand suggest a cautious approach. Investors should be mindful that, at the current valuation, the IPO is priced at a premium compared to the industry P/E ratio, which may not yield significant listing gains.

Considering the absence of pre-listing gains in the GMP and the fully priced valuation, investors may consider avoiding the Hexaware Technologies IPO if looking solely for short-term listing gains.

The Upcoming IPOs in this week and coming weeks are Royalarc Electrodes Limited, Tejas Cargo India Limited, Quality Power Electrical Equipments.

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

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