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Hexaware Technologies IPO GMP: Key Insights & Market Trends Before Listing

Hey there! So, let’s chat about the buzz surrounding Hexaware Technologies IPO GMP. If you’re considering jumping on this investment opportunity, it’s essential to get the full picture. Let’s dive in!

IPO Snapshot: Key Details You Should Know

Hexaware Technologies, backed by the Carlyle Group, is gearing up to launch its Initial Public Offering (IPO) on February 12, 2025, with the subscription window closing on February 14, 2025. The company has set a price band between ₹674 and ₹708 per equity share, each having a face value of ₹1. Investors can bid in lots of 21 shares, meaning the minimum investment would be ₹14,868. The shares are expected to list on both the BSE and NSE on February 19, 2025.

Understanding the Grey Market Premium (GMP): What’s the Buzz?

The Grey Market Premium (GMP) is essentially the extra amount investors are willing to pay over the IPO’s issue price, reflecting the market’s sentiment. As of February 6, 2025, Hexaware Technologies’ IPO was commanding a GMP of ₹46. This suggests that the shares might list at a price higher than the upper end of the price band, indicating positive market expectations.

Company Overview: Who Is Hexaware Technologies?

Founded in 1992, Hexaware Technologies is a global player in digital and technology services, with a strong emphasis on artificial intelligence (AI). The company offers a range of services across various sectors, including financial services, healthcare, manufacturing, banking, and travel. They leverage AI-powered platforms like RapidX™, Tensai®, and Amaze® to drive digital transformation, automation, and cloud adoption for their clients.

Financial Performance: A Quick Glance at the Numbers

In the financial year ending December 2023, Hexaware reported revenues of ₹10,380 crore and a profit after tax of ₹997 crore. For the six months ending June 2024,

the company posted revenues of ₹5,684 crore and a profit after tax of ₹553 crore. These figures indicate a stable financial performance, which is a positive sign for potential investors.

IPO Structure: How Are the Shares Being Offered?

The entire IPO is an Offer for Sale (OFS) by the promoter, CA Magnum Holdings, an affiliate of the Carlyle Group, which currently holds a 95.03% stake in Hexaware. This means that all the proceeds from the IPO will go to the selling shareholder,

and no new shares are being issued by the company.

Industry Peers: How Does Hexaware Stack Up?

When comparing Hexaware to its industry peers, it’s noteworthy that companies like Persistent Systems Ltd have a P/E ratio of 84x, Coforge Ltd stands at 64x,

LTIMindtree Ltd at 38x, and Mphasis Ltd at 34x. These metrics provide a benchmark for evaluating Hexaware’s valuation in the market.

Investor Allocation: Who Gets What?

The IPO has allocated up to 50% of the shares for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and a minimum of 35% for retail investors. Additionally,

eligible employees participating in the employee reservation segment are being offered a discount of ₹67 per share,

with equity shares totaling up to ₹900 million set aside for them.

Important Dates: Mark Your Calendar

  • Anchor Investor Allocation: February 11, 2025
  • IPO Opens: February 12, 2025
  • IPO Closes: February 14, 2025
  • Basis of Allotment Finalization: February 17, 2025
  • Refunds Initiated: February 18, 2025
  • Shares Credited to Demat Accounts: February 18, 2025
  • Listing Date: February 19, 2025

Final Thoughts: Should You Consider Investing?

Investing in an IPO is like embarking on a new adventure—it’s exciting but comes with its own set of risks. Hexaware Technologies boasts a solid track record in the tech industry and has shown consistent financial performance. The positive GMP indicates favorable market sentiment. However, it’s crucial to do your homework, assess your risk tolerance,

and perhaps consult with a financial advisor before making a decision.

Read More: Thandel Movie Review: An Emotional Love Saga That Tugs at the Heartstrings

Conclusion

Hexaware Technologies IPO GMP has generated significant interest, with its strong market presence and financial stability making it an attractive option for many investors. The Grey Market Premium suggests optimism,

but as with any investment, it’s essential to approach with caution and make informed decisions.

seoraval

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