IPO update: Hexaware’s QIB portion fully booked on Day 2; Quality Power subscribed 14% on Day 1

The primary market witnessed increased activity this week, with Ajax Engineering, Hexaware Technologies, and Quality Power Electrical Equipments launching their initial public offerings (IPOs) in the mainboard segment. While the ₹1,269-crore public issue of concrete equipment manufacturer Ajax Engineering closed with 6 times bidding on February 12, the big-ticket Hexaware Technologies IPO opened for subscription on February 13, followed by Quality Power on February 14.

The ₹8,750 crore IPO of Hexaware Technologies was booked 0.37 times by 12 PM on Day 2, with qualified institutional buyers portions fully subscribing by the time of reporting. On the other hand, the ₹858.70 crore issue of Quality Power was booked 0.14 times on Day 1.

Hexaware Technologies IPO receives 0.37x bidding on Day 2

The issue of U.S. private equity firm Carlyle Group-backed IT services company was booked 37% on the second day after receiving merely 0.04 times bidding on Day 1. The company received bids for 3.38 crore shares worth ₹2,397 crore compared to over 9.14 crore shares on offer. The portion reserved for qualified institutional buyers (QIB) was booked 1.13%, while non-institutional investors (NII) and retail segments were subscribed 0.05 times and 0.08 times, respectively. The company has reserved 50% of the shares for QIBs,  15% for NIIs, and remaining 35% for retail investors.

The ₹8,750 crore IPO of Hexaware 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, who currently holds 95.03% stake in the company. A day ahead of opening of the IPO, the Mumbai-based company raised ₹2,598 crore from anchor investors at upper end of its price band of ₹674-708 per share. 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.

Shares of Hexaware Technologies were commanding grey market premium of ₹2 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.

Quality Power IPO gets 0.14 times subscription on Day 1

The public issue of energy transition equipment and power technologies company was booked 0.14 times by 12:00 PM on the first day of bidding. The IPO was subscribed 0.35 times in the retail category and 0.30 times in the NII segment, while the QIB portion failed to open account by the time of reporting. Overall, the company gets bids for 15.88 lakh shares worth ₹67.50 crore compared to over 1.1 crore shares on offer.

The IPO of Quality Power Electrical Equipments, which provides high-voltage electrical equipment and solutions for grid connectivity and energy transition, is a combination of fresh issue of 0.53 crore shares worth ₹225 crore and offer for sale of 1.49 crore shares aggregating to ₹633.70 crore. The price band for the IPO is ₹401 to ₹425 per share, and the minimum lot size for an application is 26 and in multiple thereafter.

The capital raised for the issuance of fresh equity shares will be used for the acquisition of Mehru Electrical and Mechanical Engineers, and funding capital expenditure requirements of the company for purchase plant and machinery. A part of the IPO proceed will be utilised for funding inorganic growth through unidentified acquisitions and other strategic initiatives and meet general coporate purposes.

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