Hexaware Technologies IPO GMP, Price, Date & Details

Hexaware Technologies IPO - Complete Overview 

Hexaware Technologies IPO a Mainboard IPO is a book-built issue of Rs.8,750 Cr (12.36 Cr Shares) by Hexaware Technologies Limited incorporated in 1992. The company began providing distinct services in relation to global digital and technology services and now uses artificial technology as a tool for innovation.

The company uses technology to provide solutions with the use of AI to help customers mold, create, and enhance their operations in an AI-centric environment. The company’s key offshore delivery locations are Noida, Chennai, Bengaluru, Pune, etc.) and Sri Lanka.

Business Segment: The company performs services under Healthcare & Insurance, Manufacturing & Consumer, Financial Services, Travel & Transportation, Hi-Tech & Professional Services, and Banking.

Platforms: RapidX™, Tensai®, and Amaze® are some of the AI-powered platforms offered by the company, for digital transformation and marijuana adoption, which serve customers in various regions and countries worldwide.

Services:

Design & Build: In addition to new product development, software engineering, and ERP systems, the company aids customers in achieving digital transformation through technology integration across products and services, increasing productivity and decreasing time to market.

Secure & Run: The organization safeguards, controls, and improves the IT activities of its clients involving applications, middleware, data, devices, and hybrid infrastructure.

Data & AI: The company builds sustainable data value creation practices through a solid data foundation setup. The company’s AI and ML capabilities transform data into insights increasing agility and business decision trust. 

Optimize: Personalized interactions, automation, analytics, and talent management across industrial sectors are provided by the company’s Gen AI-powered business process services.

Cloud Services: The company’s Cloud Services are the starting layer, building on the cloud-enabled capabilities across all service lines for better services.

This new IPO is to be launched on 12 Feb 2025, and the initial public offering of this upcoming IPO will end on 14 Feb 2025.

Hexaware Technologies Limited IPO Details

This Rs.8,750 Cr Hexaware Technologies Limited IPO comprises a wholly offer for sale of 12.36 crore Shares. 

The IPO listing date is on February 19, 2025. Hexaware Technologies IPO price is Rs.674 to Rs.708. 

The GMP of IPOs can be viewed on our current IPO GMP page, where you can get the IPO GMP live of open IPOs.

If you want to apply for the IPO, Click to open a demat account and apply for the IPO.

Company Financial

(Amount in million)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

 

Geography-wise Revenue Breakdown

(Amount in millions)

 

Segment-wise Revenue Breakdown

(Amount in millions)

(Source RHP)

 

The Objective of the Issue

The offer's proceeds will not be given to the company. 

 

Peers of Hexaware Technologies Limited

 

Evaluation

The IPO price is between Rs.674 to Rs.708 per Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Dec 2023 with an EPS of Rs.16.45 from the last year, the resulting P/E ratio is 43.04x. 

Considering the weighted EPS of Rs.15.18 for the last three years, the P/E ratio is 46.64x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 55x.

In simple words, the P/E ratio of this IPO (43.04x), compared with the industry’s average P/E of 55x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths   

• These are comprising solutions in the industry as areas of deep domain expertise.

• AI-driven digital capabilities and platforms, built in-house, with innovation as a strategic pillar.

• Long-term and embedded relationships with a diversified blue-chip customer base.

• The go-to-market strategy focused on customer acquisition and expansion.

• A global, scalable, and flexible delivery model with a certified and skilled pool of talent.

 

IPO’s Weaknesses 

• Geographic and Client Concentration Risk- Hexaware derives a large chunk of its revenues from the Americas and Europe. Negative economic changes in these geographies could affect business performance adversely.

• Foreign Exchange Risk- The company runs across various currencies, operating mainly with the Indian Currency and U.S. Dollars; therefore, fluctuations in foreign exchange rates can impact profitability and the financial position.

• Cybersecurity Threats- The risks to the company are cyber-attacking, ransomware, and data breaches. A successful impact on cyber security could result in operation disruption, resulting in a dent in the finances and reputation.  

• Decrease in Outsourcing Budgets- Any cuts to outsourcing budgets by clients could affect Hexaware's pricing position and volume, therefore impacting revenues for the company.

 

Hexaware Technologies IPO GMP

GMP of IPO of Hexaware Technologies is Rs.35 as of 06 Feb 2025. 

Hexaware Technologies IPO Timetable (Tentative)

The IPO date is from 12 Feb to 14 Feb, with IPO allotment on 17 Feb, refund initiation on 18 Feb, and listing on 19 February 2025.

 

IPO Other Details 

The IPO with a face value of Rs.1 per Share, offers an IPO size of 12,35,87,570 Shares (Rs.8750 Cr) and it will be listed at BSE and NSE.

 

Hexaware Technologies IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (21 Shares) amounting to Rs.14,868 and 13 Lots (273 Shares) amounting to Rs.1,93,284 respectively, while for HNI investors, the minimum Lot is 14 (294 Shares) amounting to Rs.2,08,152.

IPO Reservation

 

Promoters and Management of Hexaware Technologies Ltd. 

CA Magnum Holdings.

IPO Lead Managers

• Kotak Mahindra Capital Company Limited

• Citigroup Global Markets India Private Limited

• J.P. Morgan India Private Limited

• HSBC Securities & Capital Markets Pvt Ltd.

• IIFL Securities Ltd.
  
  

Dividend Policy

No final dividend has been paid by the company in the last three fiscals.

 

Conclusion

The Hexaware Technologies IPO is a huge offering with a total issue size of Rs.8,750 Cr. The company has strong AI-enabled services and a presence worldwide. Factors like geographical concentration, forex fluctuations, and cybersecurity threats would pose risks as well. Investors should analyze the valuation in consideration of growth capability before coming to any conclusion.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

 

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