Hexaware Technologies Returns to Dalal Street: Key Highlights of Its ₹8,750 Crore IPO

Market Comeback: Hexaware is set to relist on Dalal Street after five years, with its IPO opening on February 12 and closing on February 14.

Issue Details: The Hexaware Technologies IPO, valued at ₹8,750 crore, is a pure Offer for Sale (OFS), with promoter Carlyle reducing its stake from 95% to 74.1% post-listing.

Pricing & Investment:

• Price Band: ₹674 - ₹708 per share.
• Retail Participation: Minimum bid of one lot (21 shares), requiring an investment of at least ₹14,868.
  
  

Largest IT IPO: This will be the biggest IPO in India’s IT services sector, surpassing TCS’s ₹4,713 crore IPO (2004).

Market Capitalization: At the upper price band, the company’s market cap will stand at ₹43,247 crore.

Previous Delisting: Hexaware was delisted in September 2020, with promoters buying out shares at ₹475 per share.

Revenue Growth (2023):

• Grew by 12.8% in constant currency terms.
• Lower than Persistent Systems (17.6%) and Coforge (14.5%), but higher than LTIMindtree and Mphasis.
  
  

Revenue Contribution:

• Geography: The Americas contributed 73.4% of revenue in the first nine months of FY25, with the rest from Europe & APAC.
• Sectors:BFSI & Healthcare contribute nearly 50% of total revenue.
  
  

Client Concentration:

• Top 5 clients contribute 25.8% of total revenue.
• Top 10 clients account for 35.7% of revenue in the first nine months of 2024.