Hexaware Tech raises ₹2,598 cr from anchor investors; IPO opens today

A day ahead of opening of the initial public offering (IPO), Hexaware Technologies has raised ₹2,598 crore from anchor investors at upper end of its price band of ₹674-708 per share. The ₹8,750 crore IPO of the IT services company will open for subscription today, while the public offer will close on February 14. The share allotment is expected to be finalised on February 17, and the stock is expected to be listed on BSE and NSE on February 19.

The technology services company allocated 3.67 crore equity shares to the anchor investors, of which 1.31 crore shares, (i.e. 35.85 % of the total allocation) were allotted to 15 domestic mutual funds through a total of 34 schemes.

Some of the leading mutual funds that participated in the anchor book include SBI Mutual Fund, HDFC MF, AXIS MF, ICICI Prudential MF, Kotak Mahindra MF, Aditya Birla Sun Life MF, UTI MF, Mirae AMC, HSBC MF, Motilal Oswal AMC, Fidelity Funds, Abu Dhabi Investment Authority, Goldman Sachs Funds, J P Morgan Funds, T Rowe Price Fund, Amundi Funds, Franklin Templeton Investment Funds, Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, CLSA Global Markets, 3P India Equity Fund, Axis Max Life Insurance, Bharti Axa Life Insurance etc.

The IPO of Hexaware Technologies is entirely and offer for sale (OFS) of shares by promoter CA Magnum Holdings, a subsidiary of U.S. private equity firm Carlyle Group Inc. Post-IPO, Carlyle's shareholding will decline to 74.1% from the current level of 95.03%. As the IPO is completely an OFS, all the capital proceeds will go directly to the selling shareholder, and the company will not receive any fund from it.

If successful, it would be the largest IPO in the IT services segment since Tata Consultancy Services' ₹4,700 crore IPO in 2004. The company, engaged in the business of global digital and technology services with artificial intelligence, competes with firms like Coforge, LTIMindtree, Mphasis, and Persistent Systems.

The Mumbai-headquartered company is a mid-sized IT service provider, operating in 28 countries with a team of 31,870 employees as of June 30, 2024. It has a global presence comprising 38 delivery centers supported by 16 offices spread across the Americas, Europe and Asia–Pacific region.

The company-led by CEO Srikrishna Ramakarthikeyan claims to be one of the fastest-growing technology services companies in India, with over $1,000 million in revenue from operations in each of the financial years 2023 and 2022, according to the Everest Report mentioned in the DRHP.

Ahead of opening of the bidding, shares of Hexaware Technologies were commanding grey market premium of ₹3.5 in the unlisted market on Wednesday, indicating a marginal premium over the upper end of the IPO price band of ₹708. The Hexaware Technologies IPO GMP has dropped significantly from its peak of ₹19 on February 6, 2025, amid weakness in the secondary market.

Brokerages such as Anand Rathi, StoxBox, Ventura Securities have assigned “Subscribe” to the IPO, while SBI Securities, Sushil Finance, and Arihant Capital have recommended “Long Term Subscribe”.

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