Hexaware Technologies, a global digital and technology services company, is set to launch its ₹8,750 crore IPO on February 12, 2025. This IPO is a pure Offer for Sale (OFS), meaning the company will not receive any proceeds. Instead, the selling shareholder, CA Magnum Holdings (Carlyle Group), will offload its stake, reducing its holding from 95.03% to 74.1% post-listing.
The company has a strong presence in AI-powered solutions and serves industries such as Financial Services, Healthcare, Manufacturing, Banking, and Travel. Given the IPO’s pricing and grey market trends, should you consider investing? Let’s break it down.
Hexaware Technologies – Brief history
Founded in 1992, Hexaware Technologies specializes in digital transformation, AI-driven solutions, and cloud services. It has 39 delivery centers worldwide, with key operations in Chennai, Pune, Bengaluru, Noida, and Sri Lanka. The company was delisted in 2020 at ₹475 per share by its previous owner, Baring Private Equity Asia, and later acquired by Carlyle Group in 2021.
Now, after five years, Hexaware is returning to Dalal Street with one of the largest IT IPOs in India, surpassing TCS’s ₹4,713 crore IPO from 2004.
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Why is Hexaware going public?
Hexaware Technologies is not raising fresh capital but allowing its promoter, Carlyle, to partially exit its investment. This IPO serves as a liquidity event for the private equity giant, which still plans to retain 74.1% ownership post-listing.
The company aims to expand into Tier 2 cities in India, enhance its AI capabilities, and strengthen its global delivery footprint. However, since the IPO proceeds will not be used for growth, investors must evaluate the company’s financial performance and market potential.
Hexaware Technologies financials (₹ crore)
| Year | Total Assets | Revenue | Profit After Tax | Net Worth |
| 2021 | 5,673.5 | 7,244.6 | 748.8 | 3,503.7 |
| 2022 | 6,514 | 9,378.8 | 884.2 | 3,778.1 |
| 2023 | 7,202.1 | 10,389.1 | 997.6 | 4,230.9 |
| Sep 2024 | 8,594.2 | 8,871.3 | 853.3 | 4,876 |
The company has shown steady revenue growth, with profits rising from ₹748.8 crore in 2021 to ₹997.6 crore in 2023. However, grey market trends indicate only a mild premium.
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Hexaware Technologies IPO details
| IPO Date | February 12 – February 14, 2025 |
| Issue Size | ₹8,750 crore (OFS) |
| Price Band | ₹674 – ₹708 per share |
| Lot Size | 21 shares |
| Minimum Investment (Retail) | ₹14,868 |
| Listing Date | February 19, 2025 (BSE, NSE) |
| Anchor Investors Allocation | February 11, 2025 |
Shareholding pattern
| Category | Pre-Issue Holding | Post-Issue Holding |
| CA Magnum Holdings | 95.03% | 74.1% |
| Public Shareholding | 4.97% | 25.9% |
Grey Market Premium (GMP) trends
Grey market trends indicate low listing gains. As of today, Hexaware’s IPO GMP stands at ₹8-10 per share, signaling a 1.13% premium over the issue price of ₹708.
| Date | GMP (₹) |
| Peak GMP | 19-20 |
| Current GMP | 8-10 |
| Estimated Listing Price | ₹716 |
A declining GMP suggests subdued market sentiment, with investors expecting minimal listing gains.
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Why should you invest in Hexaware Technologies IPO?
Advantages
✅ Strong AI-driven offerings: With AI adoption growing, Hexaware’s digital solutions can scale globally.
✅ Diverse customer base: The company serves 31 Fortune 500 firms, ensuring steady revenue streams.
✅ Profitable business model: The company has been generating profits consistently and maintains a healthy cash balance.
✅ Large IT sector IPO: This is the biggest Indian IT IPO, making it an important market event.
Disadvantages
❌ No fresh capital infusion: Since it’s an OFS, funds won’t be used for business expansion.
❌ High dependency on North America: 73.4% of revenue comes from the Americas, making it vulnerable to global economic conditions.
❌ Intense competition: It competes with Persistent Systems (P/E 84x), Coforge (P/E 64x), LTIMindtree (P/E 38x), and Mphasis (P/E 34x).
❌ Flat GMP trends: With only a ₹8 premium, investors might not see significant listing gains.
Bottomline
Hexaware Technologies IPO is generating lukewarm interest in the grey market, reflecting flat listing expectations. While the company is financially strong, the fact that this is an OFS with no fresh funds might deter growth-focused investors.
If you’re looking for long-term AI-driven IT investments, Hexaware could be a good option. However, for short-term listing gains, this IPO may not deliver high returns.
