Hexaware Technologies IPO Day 2 Live Updates: Issue Booked 15% So Far – Check GMP, Review, Anchor Investors Details & More
Introduction
Hexaware Technologies IPO : Hexaware Technologies, a leading IT services firm, launched its initial public offering (IPO) on February 12, 2025. The IPO, which will close on February 14, 2025, has a price range of ₹674-708 per share. This IPO is entirely an offer-for-sale (OFS) of equity shares worth ₹8,750 crore by its promoter, CA Magnum Holdings, which is backed by the Carlyle Group.
Subscription Status (Day 2 Updates)
As of the second day of bidding, Hexaware Technologies’ IPO has been subscribed 15%. The investor category-wise breakdown is as follows:
- Qualified Institutional Buyers (QIBs): 32% subscription
- Retail Individual Investors (RIIs): 6% subscription
- Non-Institutional Investors (NIIs): 2% subscription
- Employee Reservation Portion: 16% subscription
Investors can place bids for a minimum of 21 shares and in multiples thereafter. The company has already raised ₹2,598 crore from anchor investors at the upper price band of ₹708 per share before the IPO opened for subscription.
Company Overview
Hexaware Technologies is a global IT services firm specializing in digital transformation, cloud solutions, AI-driven services, and automation. The company serves 31 Fortune 500 clients across multiple geographies, including the Americas, Europe, the Asia-Pacific region, India, and the Middle East.
Hexaware’s business is divided into six key verticals:
- Financial Services
- Healthcare and Insurance
- Manufacturing and Consumer Goods
- High-Tech and Professional Services
- Banking
- Travel and Transportation
Financial Performance
- In 2023, Hexaware Technologies reported a net profit of ₹997.6 crore, maintaining a stable profit after tax (PAT) margin of around 9.6%-10%.
- For the nine months ending September 2024, the company achieved a net profit of ₹853.3 crore.
- The IPO is priced at a P/E ratio of 37.8 to 43.1 times based on CY24 earnings, making it competitive within the IT sector.
Key Financial Ratios of Hexaware Technologies
The following table summarizes the financial metrics of Hexaware Technologies:
| Financial Metric | Value |
|---|---|
| Market Capitalization | ₹43,025 Cr. |
| Current Price | ₹471 |
| Stock P/E Ratio | 43.4 |
| Book Value | ₹154 |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 29.0% |
| Return on Equity (ROE) | 22.6% |
| Face Value | ₹2.00 |
| Debt to Equity Ratio | 0.02 |
| Industry P/E | 34.0 |
| Total Debt | ₹79.2 Cr. |
| PEG Ratio | 3.89 |
| Intrinsic Value | ₹625 |
| Graham Number | ₹340 |
| Piotroski Score | 8.00 |
| Price to Book Value | 3.05 |
| Number of Equity Shares | 30.0 Cr. |
| Return on Invested Capital (ROIC) | 24.0% |
Grey Market Premium (GMP) Insights
The Grey Market Premium (GMP) for Hexaware Technologies’ IPO has not been officially disclosed. However, market analysts are closely monitoring the demand for the IPO in the grey market. Investors should check financial portals or consult experts to get updated GMP figures before making investment decisions.
Analyst Recommendations & Investment Considerations
Analysts have a positive outlook on Hexaware Technologies due to its strong financials, AI-driven innovation, and diversified revenue base. Key factors to consider before investing include:
✅ Strong global presence with Fortune 500 clients.
✅ Stable profitability with strong revenue growth.
✅ High return ratios (ROCE & ROE), low debt, and strong cash flow generation.
✅ Growing demand for digital transformation services in the IT sector.
However, investors should also consider risks such as competition from IT giants, fluctuating global IT spending, and industry-specific risks before making a final investment decision.
Conclusion
Hexaware Technologies’ IPO presents an opportunity for investors looking to invest in a well-established, high-growth IT services company. With a robust client base, strong fundamentals, and an AI-focused approach, Hexaware is poised for long-term growth. The subscription window closes on February 14, 2025, so interested investors should conduct thorough due diligence and assess their risk appetite before applying.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.