Hexaware Technologies IPO subscription Day 1: Mainboard issue booked only 3%; check price band, offer size and key dates

The initial public offering (IPO) of Hexaware Technologies Ltd opened to weak demand on Wednesday, February 12. The mainboard issue failed to get fully subscribed on the first day of bidding amid muted response from investors.

The digital and technology services provider aims to raise ₹8,750 crore from the primary market through its maiden share sale. The IPO is open for bidding till February 14.

At the end of bidding at 5 pm on the first day, the IPO was booked only 3%. The investors across categories applied for only 30.78 lakh shares against the allocation of 9.14 crore shares.

The retail investors subscribed only 4% of their allocated quota of nearly 4.5 crore shares. The retail bidders applied for only 16.47 lakh shares. The Non-Institutional Investors (NIIs) applied for 2.47 lakh shares compared to over 1.92 crore shares reserved for them. The Qualified Institutional Buyers (QIBs) placed bids for 10.25 lakh shares against 2.57 crore shares set aside for them, leading to a subscription of 4%.

The employees’ segment was booked 11% with bids for over 1.57 lakh shares against the allocation of 14.82 lakh shares.

Ahead of the launch of its IPO, Hexaware Technologies raised a total of ₹2,598 crore from anchor investors on February 11.

According to the circular on the stock exchanges, the company allotted 3.66 crore shares to multiple anchor investors, including SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Kotak MF, Aditya Birla Sun Life Insurance, Bajaj Life Insurance, Singapore government and Monetary Authority of Singapore.

Capital Group, Fidelity International, Abu Dhabi Investment Authority, JP Morgan, Goldman Sachs, Custody Bank of Japan, BNP Paribas and Societe Generale, among others, also participated in the anchor round.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Hexaware Technologies Ltd.

Hexaware Technologies IPO price band and other details

Hexaware Technologies IPO consists exclusively of an offer-for-sale (OFS) of nearly 12.36 crore equity shares, aggregating up to an amount of ₹8,750 crore. It does not have a fresh issue component.

The company has fixed the price band at ₹674 to ₹708 per share for the IPO. The minimum lot size is 21 shares, amounting to a minimum investment of ₹14,154.

Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, JP Morgan India Private Ltd, HSBC Securities & Capital Markets Pvt Ltd, and IIFL Securities Ltd are the book-running lead managers of the Hexaware Technologies IPO.

The registrar for the IPO issue is Kfin Technologies Ltd.

Hexaware Technologies IPO key dates

The IPO allotment status is expected to be finalised on Monday, February 17. Refunds will be issued on Tuesday, February 18, and the allottees will also receive shares in their Demat accounts on the same day.

The company has proposed to list its shares on the NSE and BSE on Wednesday, February 19.

About Hexaware Technologies and use of IPO proceeds

Hexaware Technologies is a leading global player in the technology services industry. The company caters to a diverse range of customers, including 31 of the Fortune 500 companies. It serves customers across the Americas, Europe and Asia-Pacific (including India and the Middle East).

The company manages its business through six business verticals: financial services, healthcare and insurance, manufacturing and consumer technology, hi-tech and professional services, banking, and travel and transportation.

The IT major also provides data and AI optimisation, and cloud computing services. Hexaware Technologies delivers its services through AI-enabled digital platforms such as Rapid for digital transformation, Tensai for AI-powered automation and Amaze for cloud adoption.

Since the public issue is completely an OFS, Hexaware Technologies will not receive any proceeds from the IPO.

Hexaware Technologies key financials

For the nine months ended September 30, 2024, the company’s revenue from operations stood at ₹8,820 crore. It reported a net profit of ₹853.3 crore during the period under review.

For the financial year ended December 2023, Hexaware Technologies reported a revenue from operations of ₹10,380.3 crore compared to ₹9,199.6 crore in the preceding fiscal (FY22). The company follows the calendar year cycle for financial reporting.

The profit after tax (PAT) for FY23 increased to ₹997.6 crore compared to ₹884.2 crore in FY22.