Hexaware Technologies Ltd. is officially listing its shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) today, marking its entry into the stock market. The company’s initial public offering (IPO) was open for subscription from February 12 to 14, with a price band set at ₹674-708 per share. The allotment process was completed on February 18, and today, February 19, marks the official listing day.
IPO Subscription and Allotment Details
On the final day of bidding, the Hexaware Technologies IPO achieved an overall subscription of 2.66 times, driven primarily by institutional investors. The subscription breakdown is as follows:
- Qualified Institutional Buyers (QIBs): 9.09 times
- Non-Institutional Investors (NIIs): 0.20 times
- Retail Individual Investors (RIIs): 0.11 times
- Employee Portion: 0.32 times
Hexaware has successfully raised ₹2,598 crore from institutional investors. The total IPO size stands at ₹8,750 crore, entirely comprising an Offer for Sale (OFS) by its promoter, CA Magnum Holdings, an affiliate of The Carlyle Group.
Hexaware’s Valuation and Industry Impact
At the higher end of the price band, Hexaware Technologies commands a valuation of over ₹43,000 crore, making it the largest IPO in India’s IT services sector since Tata Consultancy Services’ (TCS) offering over 20 years ago.
Hexaware Technologies Share Price & Market Outlook
- JM Financial Initiates Coverage:
JM Financial has started coverage on Hexaware Technologies with a BUY rating and a target price (TP) of ₹820. They have assigned a 30x Price-to-Earnings Ratio (PER) for a 16% EPS CAGR, pricing it at a 10% premium compared to the midcap average but at a 25% discount to Coforge. - CEO’s Statement:
Hexaware CEO R Srikrishna expressed excitement about the listing, viewing it as a step toward strengthening relationships with stakeholders and ensuring operational transparency. He reaffirmed the company’s commitment to delivering meaningful solutions to its clients.
