By Abhay Ray 
Introduction
Hexaware Technologies will launch its ₹ 8,750-crore initial public offering (IPO) on February 12, with a price band of ₹ 674-708 per share. Ahead of listing, the company’s shares were trading at a Grey Market Premium (GMP) of ₹ 8 in the unlisted market on Monday, reflecting a marginal 1.1% premium over the upper end of the IPO price band of ₹ 708. Hexaware Technologies initial public offer (IPO) will open for public subscription in the primary market this week. Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, JP Morgan India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd and IIFL Securities Ltd are the book-running lead managers responsible for managing the company’s IPO.
About Hexaware Technologies
Hexaware Technologies is a global digital and technology services company with artificial intelligence (“AI”) at its core. The company leverages technology to deliver innovative solutions that help its customers in their digital transformation journey and subsequent operations. The company manages its business through six operating segments based on the industries it serves: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation. Hexaware Technologies’ offerings encompass five broad services: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, which form the foundation for its offerings.
Hexaware Technologies IPO
The initial public offer (IPO) of Hexaware Technologies is set to hit the primary market next week on Wednesday, February 12. The price band for Hexaware Technologies IPO has been fixed in the range of ₹ 674 to ₹ 708 per equity share of the face value of Re 1.
In the offer, 50% of the shares in the public issue are reserved for qualified institutional buyers (QIB), 15% for Non-institutional Institutional Investors (NII), and 35% of the offer is reserved for retail investors. A discount of ₹67 apiece is being offered to eligible employees bidding in the employee reservation portion, and equity shares aggregating up to ₹900 million is reserved for employees.
Hexaware Technologies IPO size
The IPO comprises an entire offer for sale (OFS) of 123.6 million equity shares. Notably, promoter CA Magnum Holdings, which holds 577,604,202 equity shares, representing 95.03 per cent of the company, is divesting its partial stakes via the public offering.
Hexaware Technologies IPO Price band, lot size
Hexaware Technologies IPO will be available with a price band of ₹674-708 per share, and a lot size of 21 shares. Accordingly, investors can bid for a minimum of 21 shares and in multiples thereof. Retail investors need a minimum of ₹ 14,868 to bid for one lot, comprising 21 shares. For a maximum bid within the ₹1,93,284 limit, retail investors can apply for up to 13 lots, or 273 shares.
Hexaware Technologies IPO grey market premium (GMP)
As of Friday, February 7, 2025, the shares of Hexaware Technologies were trading at ₹727 apiece in the grey market, reflecting a premium of ₹19 or 2.68 percent over the upper price band of ₹708, revealed sources tracking unofficial market activities.
Hexaware Technologies financial details
Hexaware Technologies reported revenue of ₹8,820 crore for the nine months ended September 30, 2024, up from ₹7,764.30 crore in the same period last year.
The company’s total expenses for the nine months ended September 30, 2024, stood at ₹7,728 crore, up from ₹6,734 crore during the same period last year. Hexaware Technologies profit for the nine months attributable to the shareholders of the company for the period ended September 30, 2024, stood at ₹ 857.5 crore, compared to ₹ 804.8 crore in the same period last year.
Hexaware Technology Global Market
Hexaware Technologies is a global digital and technology services company with artificial intelligence (AI) at its core and having a diverse range of customers, including 31 of the Fortune 500 organizations. It serves customers across the Americas, Europe and Asia-Pacific (including India and Middle East).
Hexaware’s previous promoter, Baring Private Equity Asia, delisted the company in 2020. Almost a year after the delisting, the Carlyle Group acquired Baring Private Equity Asia’s stake in the company in October 2021.
Hexaware Technologies IPO registrar, lead managers
Kfin Technologies is the registrar for the IPO. The book-running lead managers for the issue are Kotak Mahindra Capital Company, Citigroup Global Markets India, J.P. Morgan India, HSBC Securities & Capital Markets, and IIFL Securities.
Company Valuation: At the upper-end of the price band, the company has been valued at over Rs 43,000 crore. Since the entire issue is an OFS, all the proceeds from the IPO will go directly to the selling shareholder, rather than to the company.
Conclusion
Overall, the IPO represents a significant milestone for Hexaware and the Indian IT sector, offering a chance for investors to participate in the company’s future growth. Investors should be aware that although this IPO offers an opportunity to invest in a growing IT services company, the funds raised will primarily benefit the selling shareholders, not Hexaware itself. The IPO’s success will depend on the market’s response to the pricing and demand for shares, but it signals strong confidence in Hexaware’s growth potential.
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