“Hexaware Technologies IPO 2025: Tech-Powered Expansion with Unstoppable Momentum!
Hexaware Technologies
Hexaware Technologies Limited, a prominent global digital and technology services company, is set to launch its Initial Public Offering (IPO) on February 12, 2025. The IPO, entirely an Offer-for-Sale (OFS) by the promoter CA Magnum Holdings—a subsidiary of the Carlyle Group—aims to raise ₹8,750 crore. The subscription window will be open from February 12 to February 14, 2025, with a price band set between ₹674 and ₹708 per share.
IPO Details:
- Price Band: ₹674 to ₹708 per share
- Subscription Dates: February 12 to February 14, 2025
- Lot Size: 21 shares
- Minimum Investment: ₹14,868 for retail investors
- Issue Size: ₹8,750 crore through the sale of 12.36 crore shares
- Listing Date: February 19, 2025, on BSE and NSE
The IPO is structured with 50% of the offer reserved for Qualified Institutional Buyers (QIBs), 35% for Retail Individual Investors (RIIs), and 15% for Non-Institutional Investors (NIIs). Additionally, shares worth up to ₹90 crore are reserved for employees, who will receive a discount of ₹67 per share in the employee reservation portion.
Company Overview:
Founded in 1992, Hexaware Technologies has established itself as a leader in digital transformation, leveraging artificial intelligence (AI) to provide innovative solutions across various industries. The company operates in six key segments:
- Financial Services
- Healthcare and Insurance
- Manufacturing and Consumer
- Hi-Tech and Professional Services
- Banking
- Travel and Transportation
Hexaware delivers its services through AI-enabled digital platforms such as RapidX™ for digital transformation, Tensai® for AI-powered automation, and Amaze® for cloud adoption. As of September 30, 2024, the company boasts a global presence with 39 delivery centers and 16 offices across the Americas, Europe, and the Asia-Pacific region, employing over 32,500 professionals.
Financial Performance:
In the fiscal year ending March 31, 2024, Hexaware reported a net profit of ₹997.6 crore, a 12.8% increase from the previous year’s ₹884.2 crore. Revenue from operations also saw a 12.8% rise, reaching ₹10,380.3 crore compared to ₹9,199.6 crore in the prior fiscal year. For the first nine months of FY25, the company reported revenues of ₹8,820 crore and a net profit of ₹853.3 crore.
Promoter Background:
CA Magnum Holdings, the promoter and selling shareholder in this IPO, is part of the Carlyle Group, a global investment firm. CA Magnum Holdings currently holds a 95.03% stake in Hexaware Technologies. Post-IPO, Carlyle’s stake is expected to decrease to approximately 74.1%.
Use of Proceeds:
As the IPO is entirely an Offer-for-Sale, all proceeds will go directly to the selling shareholder, CA Magnum Holdings. Hexaware Technologies will not receive any funds from this offering.
Key Strengths:
- Diverse Clientele: The company serves a wide range of customers, including 31 Fortune 500 organizations, indicating a strong market position and trust among leading global firms.
- AI-Driven Solutions: Hexaware’s focus on integrating AI into its services positions it well in the rapidly evolving digital landscape.
- Global Delivery Model: With a presence across multiple continents, Hexaware can efficiently serve clients worldwide, leveraging its global delivery centers.
Potential Risks:
- Geographical Revenue Concentration: A significant portion of Hexaware’s revenue is derived from the Americas and Europe. Economic downturns or unfavorable developments in these regions could adversely affect the company’s financial performance.
- Industry Dependence: The company generates substantial revenue from the financial services and healthcare sectors. Any negative trends or regulatory changes in these industries may impact Hexaware’s business.
- Talent Acquisition and Retention: The IT services industry is highly competitive, and Hexaware’s success depends on its ability to attract and retain skilled professionals. Challenges in this area could affect service delivery and growth prospects.
Conclusion:
Hexaware Technologies’ upcoming IPO offers investors an opportunity to participate in a company with a strong track record in digital transformation and AI-driven solutions. However, potential investors should carefully consider the company’s revenue concentrations and industry dependencies. As always, it’s advisable to consult with financial advisors and review the company’s prospectus thoroughly before making investment decisions.
ALSO READ THIS: CBSE Board Exams 2025: Master Your Preparation with These FAQs!
