The ₹8,750-crore initial public offering of Hexaware Technologies will open on Wednesday (February 12). The IPO, with a price band of ₹674-708, will close on Friday (February 14).
The minimum lot size for an application is 21. Up to 50 per cent of the issue is being allotted to qualified institutional buyers, 35 per cent to retail investors, and 15 per cent to non-institutional investors or HNIs. The company has also reserved shares for eligible employees (worth ₹90 crore), and they will be offered a discount of ₹67 a share on the IPO price..
The issue is an offer for sale by CA Magnum Holdings, a part of the Carlyle Group. So the entire ₹8,750 crore raised through the IPO will go to Carlyle. However, the OFS amount was reduced from ₹9,950 crore, as indicated in the draft documents submitted on September 6, 2024. CA Magnum Holdings owns a 95.03 per cent stake in the company.
- Also read: Hexaware Technologies IPO: Expensive valuation wears it down
The company will raise funds from anchor investors, and the allotment process will take place in a few hours. The successful bidders in the anchor portion and the number of shares allotted will be disclosed to the stock exchanges.
This will be the largest IPO in IT services, larger than Tata Consultancy Services’ ₹4,713 crore IPO in 2004.
Hexaware Technologies is an IT firm specializing in global digital and AI-driven services, focusing on industries such as financial services, healthcare, manufacturing, and travel. Founded in 1992, it operates 39 centers worldwide and offers AI-powered platforms, including RapidX (digital transformation), Tensai (automation), and Amaze (cloud adoption). Its services include digital transformation, IT operations optimization, data and AI insights, Gen AI-powered business processes, and cloud integration.
- Also read: Dramatic scaling in India markets encouraging IPO listing, said Hexaware Technologies
The company is expanding its presence in Tier 2 cities like Ahmedabad, Tamil Nadu, Uttarakhand, Dehradun, and other locations.
The objective of the issue is to improve the company’s visibility, strengthen its brand presence in the market, and offer liquidity to existing shareholders.
Anand Rathi Research has advised investors to subscribe to the issue, while SBI Securities and Arihant Capital have recommended subscribing for the long term.
The book-running lead managers for the offering are Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Capital Services.
It may be recalled that the company delisted its shares in September 2020 at ₹475 a share.