Hexaware Technologies IPO in Detail:
Coming up with an IPO worth ₹ 8750 crores book-built size, Hexaware Technologies is an entirely offer-for-sale issue of 12.36 crore Equity Shares. The window for subscription will be for three days, i.e. from February 12, 2025, to February 14, 2025. The allotment result will be expected to fall on February 17, 2025, while the listing of this company’s shares will be carried out on BSE and NSE on February 19, 2025.
The IPO price band is between ₹674 to ₹708 per share. For a lot size of 21 shares, the minimum investment for retail investors will be ₹14,868. Small and Non-Institutional Investors (sNII) need to apply for 14 lots (294 shares) costing ₹2,08,152, while Big Non-Institutional Investors (bNII) need to apply for 68 lots (1,428 shares), totaling ₹10,11,024.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets, J.P. Morgan India, HSBC Securities & Capital Markets Pvt Ltd, and IIFL Securities Ltd are the book running lead managers, while Kfin Technologies Limited is the registrar for the issue.
Industry Outlook
1. The global Cloud and Infrastructure Services market is set to become a 7.5%-CAGR engine, scaling up to ₹24.3-25.1 trillion (US$ 290.5-300.5 billion) by 2029, with demand towards digitalization working to stimulate the cloud offerings by Hexaware Technologies towards changing market requirements.
2. The Indian market for outsourced services will reach ₹1.9 trillion (US$ 22.6 billion) during CY2024, driven by initiatives like BharatNet and UPI. Hexaware’s AI-driven platforms, like Tensai® and Amaze®, cater to India’s growth in the tech ecosystem as well as the rising internet penetration for business.
About Hexaware Technologies Limited
Hexaware Technologies Limited is a global digital and technology services firm with artificial intelligence (AI) in its core. The company offers innovative solutions that allow clients to undergo digital transformation and optimize their operations. Hexaware’s AI platforms RapidX™, Tensai®, and Amaze® enable digital transformation, AI-powered automation, and cloud enablement.
Hexaware operates in six primary industries: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation. Their service offerings include, but are not limited to, Design and Build, Secure and Run, Data and AI, Optimize, and Cloud Services, catering to the diverse needs of a business.
The firm serves clients worldwide, including 31 Fortune 500 clients. It has notable customers in asset management firms, global life sciences, major insurers, and top-ranking banks. Hexaware’s customer-first approach, coupled with a high Net Promoter Score (NPS) of 72 in 2024—an improvement of 18 points from the previous year—is a testament to its commitment to customer service.
The Hexaware workforce spreads over 39 delivery centres across 28 countries, employing over 32,000 people. The growth of the company is evident since its revenues grew to exceed US$1,000 million in 2022 and 2023. Recognised as the fastest growth brand in IT services, Hexaware has grown revenues at a CAGR of 13.7% from FY2021 to FY2023, even surpassing global industry growth.
Hexaware Technologies important Dates:
| Event | Date |
| IPO Opening Date | Feb 12, 2025 |
| IPO Closing Date | Feb 14, 2025 |
| Basis of Allotment | Feb 17, 2025 |
| Initiation of Refunds | Feb 18, 2025 |
| IPO Listing Date | Feb 19, 2025 |
Hexaware IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares | Not more than 50% of the Net Offer |
| Retail Shares | Not less than 35% of the Net Offer |
| NII (HNI) Shares | Not less than 15% of the Net Offer |
IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 21 | ₹14,868 |
| Retail (Max) | 13 | 273 | ₹1,93,284 |
| S-HNI (Min) | 14 | 294 | ₹2,08,152 |
| S-HNI (Max) | 67 | 1,407 | ₹9,96,156 |
| B-HNI (Min) | 68 | 1,428 | ₹10,11,024 |
Financial Performance of Hexaware Technologies Ltd.
| Particulars | Period ending September 30, 2024 | Year ending on December 31, 2023 | Year ending on December 31, 2022 | Year ending on December 31, 2021 |
| Revenue from Operation (in ₹ million) | 88,200 | 103,803 | 91,996 | 71,777 |
| Profit After Tax (PAT) (in ₹ million) | 8,533 | 9,976 | 8,842 | 7,488 |
| EPS (Earnings per Share in ₹) | 14.12 | 16.45 | 14.65 | 12.43 |
| Cash and cash equivalents (in ₹ million) | 13,357 | 17,734 | 12,916 | 11,787 |
| Return on Net Worth (%) | 17.6 | 23.6 | 23.4 | 21.4 |
| Net Worth (in ₹ million) | 48,760 | 42,309 | 37,781 | 35,037 |
Things to Know Before Investing in Hexaware
Strengths
- Hexaware works with 31 Fortune 500 companies, showing its strong market reputation.
- Big customers bringing in over $5,000 million account for 62% of its total revenue.
- The company leverages AI-powered platforms like RapidX™, Tensai®, and Amaze® to drive digital innovation.
- With more than 32,500 employees, Hexaware delivers creative solutions across six major industries.
- It is expanding its customer base across key regions such as America, Europe, and APAC.
Risks
- Economic downturns in important regions may negatively affect growth and performance.
- A significant portion of revenue comes from the Financial Services and Healthcare & Insurance sectors, creating a dependency risk.
- Attracting and keeping skilled professionals remains a challenge.
- The competition for top talent is fierce across different regions and industries.
- Reductions in outsourcing budgets could hurt demand and affect pricing strategies.
Conclusion
Investors interested in the fast-growing IT and digital transformation sectors should consider the recent IPO of Hexaware Technologies as a potential opportunity for great investment. Due to its massive presence across the market along with a healthy partnership with Fortune 500 clients and a promising attitude toward AI-based innovation, it stands tall as a competitive player in the overall global tech scene. Also, it has a consistent financial performance along with a blossoming customer base in key regions, which indicates more growth potential.
Investors should give considerable thought to the risks associated with sector dependence, competition in the labor talent market, and adverse effects of economic changes and downsizing outsourcing budgets. Weigh these pros and cons so potential investors know if they desire participating in the IPO.
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