Hexaware Technologies Ltd. is set to launch its IPO on February 12, 2025, with the subscription closing on February 14. The IPO aims to raise ₹8,750 crore through an offer-for-sale (OFS) of 12,35,87,570 shares by promoter CA Magnum Holdings. The price band is fixed at ₹674-708 per share. The IT services provider will use the funds raised for general corporate purposes. Incorporated in 1992, Hexaware specializes in digital and technology services, incorporating AI. It has major offshore delivery centers in India and Sri Lanka, with plans to expand into Tier 2 cities like Ahmedabad. The company operates across financial services, healthcare, manufacturing, and more.
₹00
₹708
₹745.5
Expert Opinions
Hexaware Technologies IPO presents a strong opportunity in the growing IT services sector. Market sentiment is favorable, driven by the increasing demand for digital transformation and automation solutions, sectors in which Hexaware has a robust presence. The company’s strengths include its diversified client base, deep expertise in next-gen technologies, and strong growth in international markets. However, challenges exist, including intense competition and the risk of macroeconomic fluctuations affecting global demand.
Valuation analysis of FY 2024 reveals an Earnings Per Share (EPS) of ₹16.45, Return on Net Worth (RoNW) of 23.6%, and a Net Asset Value (NAV) of ₹69.77, indicating solid profitability and financial stability. These metrics suggest a fair valuation with healthy growth prospects. For long-term investors, Hexaware’s consistent performance and strategic focus on emerging technologies make it an appealing investment. However, investors should consider the risks associated with global market uncertainties before committing capital.
Investor Considerations
Hexaware Technologies IPO offers investors a solid proposition with strong company fundamentals and impressive performance. The company has demonstrated consistent growth, driven by its focus on digital transformation services and a robust global client base. The sector outlook remains positive, with rising demand for IT and digital services, positioning Hexaware well for continued success. The IPO valuation for FY 2024 shows an EBITDA margin of 16.2%, a PAT margin of 9.6%, and a price-to-book value of 10.15, indicating reasonable profitability and financial stability.
With a focus on emerging technologies, Hexaware’s growth prospects remain strong, especially in digital transformation, automation, and cloud solutions. However, risks include competition, market volatility, and the potential impact of economic slowdowns on global demand. Investors with a long-term horizon may find value in Hexaware, but should remain cautious of external risks and competitive pressures as the company continues its expansion.
| Date | GMP | Trend |
|---|---|---|
| 18 Feb 2025 11.10 | ₹00 | --- |
| 17 Feb 2025 11.13 | ₹00 | --- |
| 15 Feb 2025 11.28 | ₹00 | --- |
| 14 Feb 2025 10.36 | ₹00 | --- |
| 13 Feb 2025 18.14 | ₹00 | Down |
| 11 Feb 2025 10.56 | ₹5 | Down |
| 10 Feb 2025 10.36 | ₹10 | --- |
| 09 Feb 2025 12.35 | ₹10 | --- |
| 08 Feb 2025 20.41 | ₹10 | --- |
| 07 Feb 2025 20.04 | ₹10 | Up |
| 06 Feb 2025 19.59 | ₹00 | --- |
FAQs
The Grey Market Premium showed limited accuracy in predicting Hexaware Technologies’ listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock delivered a positive gain of 5.30%. With a prediction error of 5.30%, the GMP failed to anticipate the positive market sentiment, though the magnitude of error was relatively modest in this case.
Hexaware Technologies IPO Current GMP is ₹00.
Hexaware Technologies IPO Expected Returns is 0.00%.
Hexaware Technologies IPO estimated listing price is ₹708.