Hexaware Technologies Aims for Rs.9,950 Crore in IPO

Hexaware Technologies, a big name in the digital and tech services world, has submitted its draft red herring prospectus (DRHP) to SEBI for a Rs.9,950 crore initial public offering (IPO). This upcoming IPO will be an offer for sale by CA Magnum Holdings, a Carlyle Group subsidiary that currently holds around 95% of Hexaware.

Company Profile & Financials

Hexaware, known for its expertise in artificial intelligence (AI), offers services such as design and build, secure and run, data and AI, optimization, and cloud solutions. After being delisted from Indian exchanges in 2020, Hexaware is now gearing up to make a return to the public market.

For the last year, Hexaware posted a profit after tax (PAT) of Rs.997.6 crore, up from Rs.884.2 crore the year before. Revenue from operations also saw a 12.8% increase, reaching Rs.10,380.3 crore compared to Rs.9,199.6 crore in 2022. For the first half of 2024, the company reported Rs.5,684 crore in revenue and a PAT of Rs.553 crore.

IPO Details & Lead Managers

If everything goes as planned, this IPO will be the largest in the Indian IT sector, surpassing Tata Consultancy Services (TCS) Rs.4,713 crore offering from two decades ago. As an offer for sale, the funds raised will go straight to CA Magnum Holdings, not Hexaware itself.

The company has selected Kotak Mahindra Capital, Citigroup Global Markets India, JPMorgan India, HSBC Securities and Capital Markets (India), and IIFL Securities to handle the book-running lead management for this issue. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Conclusion: All in all, Hexaware Technologies’ raising Rs.9,950 crore through its IPO highlights its growth in the tech industry. As the largest IT sector IPO in India’s history, it marks Hexaware’s comeback and signals a growing interest in tech-driven investments. With good financials and a broad range of services, Hexaware’s public re-entry will be interesting to watch.

Excited about new investment opportunities? Discover our Upcoming IPO and be the first to invest in the next big thing. Secure your financial future today!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.