Hexaware Technologies Limited is engaged in the business of global digital and technology services with artificial intelligence. Hexaware Technologies IPO looks to raise Rs 8,750.00 crores. The issue is entirely an offer for sale.
| IPO opens | February 12, 2025 |
| IPO Closes | February 14, 2025 |
| IPO Size (Rs.) | ₹8,750 Cr |
| Breakup | OFS only |
| Face Value: | ₹ 1 |
| IPO Price in Rs : | ₹674 to ₹708 per share |
| Minimum Lot | 21 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| BRLM | ICICI Securities, Citigroup Global, JM Financial, Nuvama Wealth, SBI Capital Markets |
| Registrar | MUFG Intime India Pvt Ltd |
About Ajax Engineering Limited
- The Company was incorporated as ‘Aptech Information Systems Limited’ on November 20, 1992. The name was changed to ‘Hexaware Technologies Limited’ on April 2, 2002 and the company were voluntarily delisted in November 2020.
- Hexaware Technologies is a global digital and technology services company with artificial intelligence (“AI”) at its core. The company leverages technology to deliver innovative solutions that help customers in their digital transformation journey and subsequent operations.
- The company has 6 operating segments based on the industries it serves:
- Financial Services,
- Healthcare and Insurance,
- Manufacturing and Consumer,
- Hi-Tech and Professional Services,
- Banking, and Travel
- Transportation.
- The company’s offerings encompass 5 broad services: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, which form the foundation for its offerings.
Financials : Hexaware Technologies IPO
| Particulars / Rs cr | 2024 (9) | 2023 (9) | 2023 (12) | 2022(12) | 2021(12) |
| Revenue from Operations | 8,820.00 | 7,764.30 | 10,380.30 | 9,199.60 | 7,177.70 |
| Revenue Growth (%) | 13.60% | – | 12.80% | 28.20% | – |
| EBITDA as stated | 1,391.10 | 1,248.80 | 1,589.90 | 1,400.90 | 1,199.80 |
| EBITDA Margin (%) | 15.80% | 16.10% | 15.30% | 15.20% | 16.70% |
| Net Profit | 853.3 | 804.8 | 997.6 | 884.2 | 748.8 |
| Net Profit (%) | 9.70% | 10.40% | 9.60% | 9.60% | 10.40% |
| No. of employees | 32,536 | 28,146 | 28,292 | 28,608 | 24,166 |
| Attrition rate | 11.30% | 16.10% | 14.70% | 23.20% | 22.10% |
| Post issue Share Capital | 60.77 | ||||
| FV | 1.0 | ||||
| IPO price | 708.0 | ||||
| PE | 43.12 | ||||
| PE (annualized) | 37.8 | ||||
| Market cap in cr. | 43,025 | ||||
| Market cap / Sales | 4.14 |
Anchors: Hexaware Technologies IPO
Major anchor investors in the Hexaware Technologies IPO include SBI MF, HDFC MF, Axis MF, ICICI Prudential MF, Kotak Mahindra MF, UTI MF, Mirae AMC, HSBC MF, Fidelity Funds, Abu Dhabi Investment Authority, Goldman Sachs Funds, and J.P. Morgan Funds2. Other key investors are ICICI Prudential Life Insurance and CLSA Global Markets2. The Government of Singapore and the Monetary Authority of Singapore also participated as anchor investors.
Salient Points: Hexaware Technologies IPO
- The issue is entirely OFS by promoter Carlyle with its 95% stake dropping to 75%.
- Hexaware Technologies has a diverse range of customers, including 31 of the Fortune 500 organizations.
- The company has a global delivery presence comprising 39 delivery centers supported by 16 offices spread across the Americas, Europe and APAC as of September 30, 2024.
- The company has 20 patents granted and 119 trademarks registered in various countries, 2 copyrights registered in India, and 49 domain names registered worldwide. Further, the company has filed applications for 45 patents and 23 trademarks, comprising 6 product marks and 14 service marks, in various countries.
- The company derives 73.4%/71.5% of the revenue from operations from Americas and 20.5%/22.1% of the revenue from operations from Europe for the 9MCY24 and CY23, respectively.
- The company’s revenues from operation grew at a CAGR of 13.7% (in $ terms)from Financial Year 2021.
- Peers:
| Particulars (Rs cr) | Sales | OPM % | PE (x) |
| Hexaware (2023) | 10,380 | 15% | 43 (38) |
| Coforge | 11,140 | 13.80% | 68.7 |
| Persistent Systems. | 11,287 | 17.10% | 66.6 |
| Mphasis | 13,932 | 18.50% | 30.1 |
| LTIMindtree | 37,129 | 17.30% | 38 |
- PE FY25 (annualized): 38 x ; PE Fy24 – 43 x
- Hexaware Technologies was the fastest-growing technology services company headquartered in India, with over US$1,000 million in revenue from operations in each of the financial years 2023 and 2022.
- I may apply in Hexaware Technologies IPO only if response from QIB is quite good. There have been very dood Anchors in Hexaware Technologies IPO. Promoter being a PE, will look to pare stake going forward. Current market conditions do not look conducive.
- GMP as per social media is in single digits.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.