Hexaware Technologies IPO opens tomorrow: GMP, issue details, 10 key things to know

Hexaware Technologies IPO opens for subscription on tomorrow (Wednesday, February 12). The firm is a worldwide provider of digital and technological services, with artificial intelligence (AI) as a fundamental element.

It organizes its operations into six segments based on the industries it caters to: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation. The services offered fall into five main categories: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, which serve as the core of their business model.

From the financial year 2021 to the financial year 2023, the company experienced a compound annual growth rate (CAGR) of 13.7% in revenue from its operations (in USD), while the Everest Report indicated that the global outsourced IT-BP services sector grew at a CAGR of 7.3% over the same timeframe.

According to the red herring prospectus (RHP), the company’s listed competitors include Persistent Systems Ltd (which has a P/E of 84x), Coforge Ltd (with a P/E of 64x), LTIMindtree Ltd (showing a P/E of 38x), and Mphasis Ltd (with a P/E of 34x).

Here are the 10 key things to know about Hexaware Technologies IPO:

Hexaware IPO date: Hexaware Technologies IPO date of subscription is scheduled for Wednesday, February 12 and will close on Friday, February 14.

Hexaware IPO price band: Hexaware Technologies IPO price band has been fixed in the range of ₹674 to ₹708 per equity share of the face value of Re 1.

Hexaware IPO lot size: Hexaware Technologies IPO lot size is 21 equity shares and in multiples of 21 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Hexaware Technologies IPO is scheduled to take place today (Tuesday, February 11).

Hexaware IPO details: Hexaware Technologies’ initial public offering (IPO) is entirely comprised of an offer-for-sale (OFS) of shares valued at ₹8,750 crore from its promoter, CA Magnum Holdings, which is a division of the Carlyle Group Inc., a global corporation based in the United States. The OFS amount has been reduced from the ₹9,950 crore previously indicated in the draft documents submitted on September 6, 2024.

Hexaware IPO objective: Consequently, all proceeds from the IPO (excluding expenses related to the offering) will go to the promoter, CA Magnum Holdings, which is the selling entity. CA Magnum holds a 95.03 percent stake in the company, while the remaining shares are owned by public investors.

Hexaware IPO listing date and allotment details: Tentatively, Hexaware Technologies IPO basis of allotment of shares will be finalised on Monday, February 17 and the company will initiate refunds on Tuesday, February 18 while the shares will be credited to the demat account of allottees on the same day following refund. Hexaware Technologies share price is likely to be listed on BSE and NSE on Wednesday, February 19.

Lead Manager and Registrar of Hexaware IPO : 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.

Hexaware IPO reservation: Hexaware Technologies IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 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 IPO GMP today: Hexaware Technologies IPO GMP or grey market premium is +3.5. This indicates Hexaware Technologies share price were trading at a premium of ₹3.5 in the grey market on Tuesday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Hexaware Technologies share price was indicated at ₹711.5 apiece, which is 0.49% higher than the IPO price of ₹708.

Based on the last six sessions of grey market activities, today’s IPO GMP is trending downwards and is anticipated to decrease further. The minimum GMP is ₹3.50, while the maximum GMP is ₹19, according to experts at investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.