Hexaware Technologies Limited, a global digital and technology services company, is coming up with its Initial Public Offering (IPO) in February 2025. This article provides upcoming IPO and review of Hexaware Technologies IPO, covering company details, competitive strengths, financials, issue details, risks, analysis and whether investors should subscribe or avoid this IPO.
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About Hexaware Technologies Limited
Incorporated in 1992, Hexaware Technologies is a global IT and digital solutions company that leverages artificial intelligence (AI) to drive digital transformation. The company offers services across multiple industries, including banking, financial services, insurance, healthcare, manufacturing, and consumer services.
Hexaware has a strong global presence with 39 delivery centers and 16 offices across the Americas, Europe, and Asia-Pacific. The company has significant offshore delivery capabilities in India (Chennai, Pune, Bengaluru, Noida) and Sri Lanka, with plans to expand into Tier 2 cities like Ahmedabad.
Competitive Strengths
- AI-powered digital solutions: The company provides advanced automation and cloud solutions through its platforms like RapidX™, Tensai®, and Amaze®.
- Diverse global clientele: Hexaware serves blue-chip customers across industries, ensuring stable revenue streams.
- Experienced leadership team: The management team has extensive experience in the IT and digital transformation industry.
- Strong financial performance: Consistent revenue growth and profitability, with high return on net worth (RoNW).
Hexaware Technologies IPO Details
- IPO Opening Date: February 12, 2025
- IPO Closing Date: February 14, 2025
- Allotment Date: February 17, 2025
- Listing Date: February 19, 2025
- Issue Size: ₹8,750 Crores
- Issue Type: Offer for Sale (OFS)
- IPO Price Band: ₹674 – ₹708 per share
- Lot Size: 21 Shares
- Minimum Investment: ₹14,868 (for retail investors)
- Listing Exchanges: BSE & NSE
- Lead Managers: Kotak Mahindra Capital, Citigroup, J.P. Morgan, HSBC Securities, IIFL Securities
- Registrar: KFin Technologies Limited
Why Hexaware Technologies Delisted shares earlier?
You might be wondering that Hexaware Technologies Shares were already listed and traded earlier, then how come it is coming up with IPO now.
Company shared were listed till Nov-2020. It got delisted from the bourses in November 2020 after the company’s then promoters had accepted the discovered delisting price of ₹ 475 per share
Financials of Hexaware Technologies Limited (₹ in Crores)
| Period Ending | Revenue | Net Profit | Net Worth |
|---|---|---|---|
| 9M FY 2024 | 8,871.3 | 853.3 | 4,876 |
| 31-Dec-2023 | 10,389.1 | 997.6 | 4,230.9 |
| 31-Dec-2022 | 9,378.8 | 884.2 | 3,778.1 |
| 31-Dec-2021 | 7,244.6 | 748.8 | 3,503.7 |
Hexaware has demonstrated steady revenue growth and profitability, making it a financially strong company.
Objects of the IPO
Since this is a complete Offer for Sale (OFS), the company will not receive any proceeds from the IPO. The selling shareholder, CA Magnum Holdings (Promoter), aims to offload its stake through this offering.
Hexaware Technologies IPO Valuation – P/E Ratio Compared to Peers
| Company | P/E Ratio |
|---|---|
| Hexaware Technologies | 41x |
| Persistent Systems | 84x (Highest) |
| Mphasis | 34x (Lowest) |
| Industry Average | 55x |
Hexaware’s P/E of 41x is fully priced..
Reasons to Invest in Hexaware Technologies IPO
- Strong Market Position – Hexaware is a well-established IT services company with a strong client base.
- Consistent Growth – The company has shown steady financial growth in recent years.
- Global Expansion Plans – Plans to enter Tier 2 cities in India and expand delivery centers could drive future growth.
- AI and Cloud Focus – The company’s investment in AI-driven solutions gives it a competitive edge.
Risk Factors to Consider
- Premium Valuation – The IPO is priced at a P/E of 41x compared to competitors like Infosys, Wipro and others which are trading below 25x.
- No Fresh Issue – Since the IPO is purely an OFS, Hexaware will not receive any capital for expansion.
- IT Sector Slowdown – Any slowdown in the IT industry could impact revenue growth.
- High Dependence on Large Clients – Loss of key clients could affect financial performance.
Hexaware Technologies IPO Grey Market Premium (GMP)
As of now, the GMP for Hexaware Technologies IPO is ₹ 19 to ₹ 42 per share. This indicates moderate demand in the grey market.
- GMP as per Chittorgarh – ₹ 19 per share
- GMP as per IPOWatch – ₹ 20 per share
- GMP as per Investorgain – ₹ 19 per share
- However AliceBlue says Hexaware Tech IPO GMP at ₹ 46
(Note: GMP fluctuates and may change closer to the listing date.)
How to Apply for Hexaware Technologies IPO?
- Through ASBA (Net Banking): Login to your bank’s net banking portal, navigate to IPO section, and apply using ASBA.
- Using UPI (Brokers/Trading Apps): Apply through online trading apps like Zerodha, Groww, Upstox, etc., by linking your UPI ID.
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Hexaware Technologies IPO Review – Should You Invest?
Hexaware Technologies is a well-established IT services company with a strong track record. However, the IPO is fully priced compared to its peers, and since it’s an OFS, the company will not receive any funds for growth.
Who should invest?
- Investors with a long-term perspective who believe in Hexaware’s AI and cloud-driven growth story.
- Those comfortable with moderate to high valuations.
Who should avoid?
- Investors looking for quick listing gains, as the premium pricing may limit upside potential.
- Those preferring IPOs with a fresh issue component to support expansion.
Final Verdict: Neutral to Positive – Suitable for long-term investors, but may not get listing gains due to moderate to high valuation in IPO Price and low GMP.
Do you plan to apply for Hexaware Technologies IPO? Share your thoughts in the comments below!
Disclaimer: This article is for educational purposes only. Investing in IPOs or Stocks is riskier, and you may lose your capital. Please consult your financial advisor before investing in IPOs
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