Hexaware Technologies IPO Subscribed 4% on Day 2: GMP, Price Band, and Details
The initial public offering (IPO) of Hexaware Technologies, which reopened for public bidding on February 12, has seen an overall subscription of 4% as of 12:00 pm on Thursday, the second day of bidding. The company aims to raise Rs 8,750 crore through the IPO, which closes on February 14.
Subscription Status (Day 2)
- Overall Subscription: 4%
- Retail Portion: Subscribed 5%
- Non-Institutional Investors (NII): Subscribed 2%
- Qualified Institutional Buyers (QIB): Subscribed 4%
Hexaware Technologies, which was delisted from the exchanges in 2020, is returning to the public markets through this IPO, an offer for sale (OFS) of 12.35 crore shares.
Anchor Investors
Ahead of the issue opening, the company raised Rs 2,598 crore from anchor investors, including:
- SBI MF
- HDFC MF
- AXIS MF
- ICICI Prudential MF
- ADIA
- Goldman Sachs
Hexaware Technologies IPO GMP (Day 2)
The Grey Market Premium (GMP) for Hexaware Technologies IPO is Rs 3 in the unlisted market on Thursday, indicating a premium of just 0.4% over the upper end of the IPO price band of Rs 708.
Proceeds from IPO
Since the IPO is entirely an OFS, all proceeds will go to the selling shareholders. The amount raised by the company will be the biggest by any IT services company in India, even surpassing TCS, which raised Rs 4,700 crore 20 years ago.
Hexaware Technologies IPO Price Band
The company has fixed a price band of Rs 674-708 per share. Investors can bid for 21 shares in one lot and in multiples thereafter.
Hexaware Technologies IPO Review: Should You Subscribe?
Analysts advise investors to subscribe to the IPO from a long-term perspective, citing cheap valuations and strong financial growth leveraging AI, which has immense potential. The company is valued at a CY24E P/E of 37.6x, based on the upper price band on the post-issue capital, which is relatively cheaper than its peers.
About Hexaware Technologies
Hexaware Technologies is a global digital and technology services company centered around artificial intelligence (AI). The company provides innovative solutions for customers' digital transformation journeys and ongoing operations, embedding AI into all aspects of its services.
The company operates in six industry segments:
- Financial Services
- Healthcare and Insurance
- Manufacturing and Consumer
- Hi-Tech and Professional Services
- Banking
- Travel and Transportation
Its offerings include design and build, secure and run, data and AI, optimize, and cloud services. Hexaware serves clients across the Americas, Europe, and the Asia-Pacific region, including India and the Middle East.
Hexaware’s dollar revenue and rupee revenue have grown at a CAGR of 14% and 20%, respectively, over CY21-23 with a stable EBIT margin.
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