Hexaware Technologies has made a grand comeback to the stock market with a massive Rs 8,750 crore IPO, making it the largest public offer by an Indian tech company to date. The company, which was delisted in 2020 at Rs 475 per share, is now offering investors a chance to be part of its journey again. The public issue opened on February 7 and will close on February 14. So, what does this mean for investors? Let’s break it down.
What’s the Offer Price?
The Hexaware Technologies IPO is an offer for sale (OFS) of 12.36 crore shares, with a price band set between Rs 674 and Rs 708 per share. Here’s how the shares are allocated:
- 50% for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Investors
- Employee Reservation: Eligible employees bidding under this portion will receive a Rs 67 per share discount
This structured allocation ensures a balanced distribution among different types of investors.
How Did Anchor Investors Respond?
Hexaware raised a whopping Rs 2,598 crore ahead of its IPO from anchor investors, which included some major global financial institutions like:
- CLSA
- Government of Singapore
- Monetary Authority of Singapore
- JP Morgan
- Goldman Sachs
The company allocated 3.66 crore shares at Rs 708 each, which is the upper price band of the IPO. This strong backing from global investors reflects confidence in Hexaware’s growth potential.
What Happens to the IPO Proceeds?
Unlike fresh issues where companies raise money for expansion or debt repayment, the entire proceeds of this offer for sale (OFS) will go to the promoter, CA Magnum Holdings. Hexaware itself will not receive any funds from this IPO.
When Will the Shares Be Listed?
Investors waiting to see Hexaware’s stock live on the market won’t have to wait long. Here’s the timeline:
- IPO Allotment Finalization: February 17
- Refund Initiation: February 18
- Shares Credited to Demat Accounts: February 18
- Expected Listing Date on BSE & NSE: February 19
Mark your calendars if you’ve applied for the IPO!
Hexaware Technologies: A Quick Overview
Hexaware Technologies is a global digital transformation and technology services giant with an impressive AI-driven service portfolio. The company operates across multiple industries, including:
- Financial Services
- Healthcare & Insurance
- Manufacturing & Consumer Goods
- Hi-Tech & Professional Services
- Banking
- Travel & Transportation
For the six months ending September 2024, Hexaware reported a net profit of Rs 853.3 crore with a revenue of Rs 8,594.2 crore. These strong financials indicate that the company is in solid shape.
Should You Invest in the Hexaware Technologies IPO?
Pros of Investing:
- Strong financial performance’s with consistent revenue growth.
- Well-diversified’s client base across industries.
- AI-led digital transformation services’s, positioning the company for the future.
- Strong institutional investor backing’s.
Potential Risks:
- Market volatility can impact short-term price movements.
- High valuation’s compared to competitors.
- No fresh issue, meaning the company isn’t raising funds for business expansion.
What’s the Future of Hexaware Technologies?
With a strong focus on AI-driven digital services and cloud computing, Hexaware is well-positioned to capitalize on the global tech boom. Its strategic international presence gives it an edge over competitors. The company’s robust financial performance also suggests steady growth potential.
Final Thoughts
Hexaware’s Rs 8,750 crore IPO has undoubtedly caught investors’ attention, especially as it marks the largest tech sector IPO in India. With a well-established business model, strong investor backing, and a solid track record, the company appears to be a promising investment option. However, as with any IPO, investors should carefully assess their risk appetite and long-term goals before making a decision.
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Conclusion
The Hexaware Technologies IPO is a big deal in the tech world, and investors are watching closely. With a strong business model, significant institutional backing, and promising growth prospects, it offers an exciting investment opportunity. If you’re looking for exposure to the booming IT sector, this might be the IPO for you. Just remember – investing in IPOs always comes with risks, so do your homework before diving in!
