Hexaware Technologies IPO opened for bidding today, February 12, and will remain open until February 14. The price band for the issue is set between Rs 674 to Rs 708 per share, with a total issue size of Rs 8,750 crore.
Hexaware Technologies IPO: Structure
The Carlyle-backed IPO is an OFS, meaning that no fresh capital will be raised. Instead, the entire proceeds will go to the selling shareholders, rather than the company itself.
Hexaware Technologies IPO: GMP update
Currently, Hexaware Technologies shares are trading at a Rs 2 premium in the grey market, suggesting an estimated listing price of Rs 710 per share. This indicates a marginal 0.28% premium over the upper price band of Rs 708 per share.However, it is important to note that GMP is not an official indicator of listing, as market sentiment can change.
ALSO READAjax Engineering IPO Vs Hexaware Technologies IPO: Which is a better option to bet on? Hexaware Technologies IPO: Subscription status on Day 1
As of now, the IPO has been subscribed 0.01 times, with the retail category seeing a 0.02 times subscription. However, the NII and QIB categories are yet to receive bids.
What brokerages say about Hexaware IPO
Ventura Securities: Fully valued but consistent growth
Ventura Securities pointed out of the Hexaware’s steady financial growth, with a 13.7% revenue CAGR in USD terms from FY21-23, surpassing the industry average of 7.3%. The company reported a net profit of Rs 997.6 crore in CY23 and Rs 853.3 crore in 9M-CY24, maintaining a PAT margin of around 9.6%-10%.
However, the brokerage noted that the IPO is priced at a P/E ratio of 37.8-43.1x, making it appear fully valued when compared to industry peers like Persistent Systems and Coforge.
ALSO READCarlyle-backed Hexaware Tech IPO: 7 things you need to know before February 12
HDFC Securities: Listing to boost brand visibility
The brokerage firm, HDFC Securities in its IPO note highlighted that Hexaware’s IPO is purely for listing benefits, aimed at increasing the company’s visibility, brand recognition, and liquidity for existing shareholders. Since this is an OFS, all proceeds will go to the selling shareholders rather than the company.
Bajaj Broking: Subscribe for long-term gains
Bajaj Broking has given a “Subscribe for long term”
» Read More
