| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 674 to ₹ 708 | 21 | 12th Feb, 2025 – 14th Feb, 2025 | ₹8,750.00 Cr |
About Hexaware Technologies Limited IPO
Hexaware Technologies is a global digital and technology services company centred around Artificial Intelligence (AI). The company provides innovative solutions for customer’s digital transformation journeys and ongoing operations, embedding AI into all aspects of its services. The company operates in six industry segments: Financial Services, Healthcare and insurance, Manufacturing and consumer, Hi-Tech and Professional Services, Banking, and Travel and transportation. The company has a global footprint, providing services across the Americas, Europe, and the Asia-Pacific (APAC) region, including India and the Middle East. Its international presence enables the company to serve diverse clients, including multinational corporations and mid-sized enterprises. The company offerings include Design and build, Secure and run, Data and AI, Optimize, and Cloud Services. The company leverages AI-enabled platforms such as RapidX™, Tensai®, and Amaze®. Additionally, its strategic partnerships contribute to expanded service capabilities and market reach. The company has a global delivery presence comprising 39 delivery centres supported by 16 offices across the Americas, Europe and APAC as of September 30, 2024. As of September 30, 2024, the company had a team of 32,536 employees in 28 countries. The Brand Finance 100 2024 report recognised the company as the ‘Fastest Growing Brand’ among the Top 10 IT Services Companies.
Objective of the Hexaware Technologies Limited IPO
The company will not receive any proceeds from the issue as the entire issue is comprised of OFS
Rationale To Hexaware Technologies Limited IPO
Deep domain expertise delivered through comprehensive solutions across industries
Hexaware Technologies Limited provides comprehensive services and solutions to customers across six industries, each comprising an operating segment: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation. Revenue from operations contributed by each of Hexaware Technologies Limited’s six operating segments has consistently increased from CY21 to C23 and 9MCY24. Four of the operating segments – Financial Services, Healthcare and Insurance, Manufacturing and Consumer, and Hi-Tech and Professional Services—each contributed over US$200 million in revenue from operations for CY23. Hexaware Technologies Limited’s expertise is further complemented by a mix of strategic and industry-focused partners, such as ServiceNow, which offers AI-powered solutions for various business functions like human resources, IT, customer service, security, and finance, and Backbase, a banking financial technology company based in the Netherlands. The company believes these partnerships provide valuable opportunities to refine its value proposition for customers across the industries and geographies it serves.
AI-led digital capabilities and platforms built in-house with innovation as a strategic pillar
Hexaware Technologies Limited has leveraged its domain expertise to develop three AI-enabled digital platforms that create value for customers across its service offerings:
(1) RapidX™ for digital transformation,
(2) Tensai® for AI-powered automation, and
(3) Amaze® for cloud adoption.
Innovation is a key pillar of Hexaware’s business strategy, and the company has prioritised it by building its intellectual property portfolio, enhancing technological expertise, and investing in next-generation technologies. As of the Red Herring Prospectus date, Hexaware holds 20 granted patents, 119 registered trademarks in multiple countries, two copyrights registered in India, and 49 domain names registered globally. The 119 trademarks include 9 product marks and 98 service marks, with some trademarks registered as both product and service marks. Additionally, the company has filed applications for 45 patents and 23 trademarks in various countries, comprising 6 product marks and 14 service marks. This innovation is supported by training, skill development, and talent recruitment. Hexaware also operates innovation labs in Chennai, Tamil Nadu; Amsterdam, Netherlands ; and Berlin, Germany, focusing on efficiency improvement, modernisation, and upscaling services for internal and customer projects. Driven by its AI-enabled approach, Hexaware has incorporated AI and Gen AI across its solutions, services, internal decision-making, and human capital management processes while ensuring data security and adherence to ethical and regulatory standards. The company’s employees have earned 15,722 Gen AI Foundation Level certifications and 3,417 Gen AI Advanced certifications through HexaVarsity, the company’s Gen AI training and certification program.
Valuation of Hexaware Technologies Limited IPO
Hexaware Technologies has undergone significant evolution over the past decade, expanding its service offerings, diversifying its customer base, enhancing its global delivery capabilities, and placing a stronger emphasis on innovation and technology. The company serves a wide array of clients, including 31 organizations from the Fortune 500 list. The global enterprise technology services market is projected to reach approximately Rs. 343 trillion (US$ 4,107.5 billion) in CY2029E from Rs. 266 trillion (US$ 3,109.4 billion) in CY23, with IT services expected to grow at a compound annual growth rate (CAGR) of around 7.2%, while business process services are anticipated to grow at a CAGR of roughly 2.5% during the period from CY24 to CY29E. The company has a global delivery presence across India, UAE, USA, Mexico, Europe and South East Asia that enables the company to offer innovative and cost-effective solutions to its customers. Additionally, its strategic partnerships contribute to expanded service capabilities and market reach. Hexaware’s adjusted cash conversion percentage reached 89.9% for CY23, up from 56.0% in CY22. This demonstrates the company’s strong cash generation capabilities and efficient working capital management. Hexaware’s track record of robust revenue growth, improving margins, and strong cash generation positions it well for continued success, underscoring its commitment to delivering value to stakeholders. The issue is valued at a price-to-earnings (P/E) ratio of 43.1x on the upper price band based on CY23 earnings, which is relatively cheaper compared to its peers. Considering the above compelling factors, we recommend a “SUBSCRIBE” rating for this issue.
What is the Hexaware Technologies Limited IPO?
Hexaware Technologies IPO is a book built issue of Rs 8,750.00 crores. The issue is entirely an offer for sale of 12.36 crore shares. Login to your account now.
How to apply for the Hexaware Technologies Limited IPO through StoxBox?
To apply for the Hexaware Technologies Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Hexaware Technologies Limited IPO open?
Hexaware Technologies Limited IPO is opening on 12th February 2025. Apply Now
What is the lot size of the Hexaware Technologies Limited IPO?
The Lot Size of Hexaware Technologies Limited IPO is 21 equity shares. Login to your account now.
When is the Hexaware Technologies Limited IPO allotment date?
The allotment Date for Hexaware Technologies Limited IPO is 17th February 2025. Login to your account now.
When is the Hexaware Technologies Limited IPO listing date?
The listing Date for Hexaware Technologies Limited IPO is 19th February 2025. Login to your account now
What is the minimum investment required for the Hexaware Technologies Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,868. Login to your account now
What is the maximum investment allowed for the Hexaware Technologies Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 193,284. Login to your account now
What are the risks associated with investing in the Hexaware Technologies Limited IPO?
- The company derives 73.4% of revenue from the Americas and 20.5% from Europe. Any economic downturn or regulatory change in these regions could significantly impact its financial performance
- The company operates in multiple currencies but incurs most costs in Indian Rupees. Fluctuations in forex rates, particularly appreciation of INR against USD and EUR, could affect profit margins, business and financial condition.
- The company is vulnerable to cyber-attacks, ransomware, and data breaches. A significant breach could lead to financial losses, legal liabilities, and reputational damage.
When will the Hexaware Technologies Limited IPO shares be credited to my Demat account?
The Hexaware Technologies Limited IPO be credited to the account on allotment date which is 18th February 2025. Login to your account now
Where can I find the Hexaware Technologies Limited IPO prospectus?
The prospectus of Hexaware Technologies Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Hexaware Technologies Limited IPO?
| IPO Open Date | Wed, Feb 12, 2025 |
| IPO Close Date | Fri, Feb 14, 2025 |
| Basis of Allotment | Mon, Feb 17, 2025 |
| Initiation of Refunds | Tue, Feb 18, 2025 |
| Credit of Shares to Demat | Tue, Feb 18, 2025 |
| Listing Date | Wed, Feb 19, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 14, 2025 |
