Hexaware Tech sets price band of ₹674-708 for ₹8,750-crore IPO
Hexaware Technologies, a leading provider of IT services and solutions, has set a price band of ₹674-708 for its upcoming initial public offering (IPO). The issue, which is expected to be India’s biggest ever in the IT services sector, will open for subscription on February 12 and close on February 14. The IPO will consist entirely of an offer for sale of up to 12.35 crore shares, aiming to raise ₹8,750 crore.
The price band of ₹674-708 per share is slightly higher than the expected range of ₹650-700 per share. Investors will be able to bid for a minimum of 28 shares and in multiples of 28 shares thereafter. The issue is expected to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the ticker symbol “HEXAWARE”.
Hexaware Technologies is a global IT service provider that offers a range of services including digital transformation, cloud, cybersecurity, and artificial intelligence. The company has a strong presence in the United States, Europe, and Asia-Pacific regions, and has clients across various industries including banking, financial services, healthcare, and manufacturing.
The company’s IPO is being led by investment banks Kotak Mahindra Capital Company, Morgan Stanley, and Citigroup Global Markets India. The issue is expected to be listed on the stock exchanges on February 22, subject to market conditions and regulatory approvals.
The company’s financial performance has been impressive in recent years, with revenue growing at a compound annual growth rate (CAGR) of 15.4% over the past three years. The company’s net profit has also grown at a CAGR of 24.3% over the same period. In the fiscal year 2022, Hexaware Technologies reported a revenue of ₹5,335 crore and a net profit of ₹1,134 crore.
The company plans to use the proceeds from the IPO to repay debts, pay dividends to its shareholders, and for general corporate purposes. The offer for sale will be made by the company’s existing shareholders, including its founders, promoters, and institutional investors.
The IPO has received a mixed response from analysts, with some predicting a strong demand for the issue while others are cautious due to the high price band and the current market conditions. “The issue is priced at a premium, but Hexaware Technologies has a strong track record of growth and a robust financial position,” said an analyst with a leading brokerage firm. “We expect the issue to be well-received by investors, especially institutional investors.”
On the other hand, some analysts are concerned about the high valuation of the company. “The company’s valuation is quite high, and the issue is priced at a premium,” said another analyst. “We are cautious on the issue and advise investors to wait for some correction in the market before investing.”
In conclusion, Hexaware Technologies’ IPO is one of the most anticipated issues in the Indian capital markets this year. With a strong track record of growth and a robust financial position, the company is expected to attract a strong demand for its shares. However, investors should be cautious and do their due diligence before investing in the issue.
Source: https://www.ndtvprofit.com/amp/ipos/hexaware-technologies-ipo-price-band-set-for-rs-8750-crore-ipo
