Hexaware launches Rs 8,750 crore public offer, largest from tech sector: What’s in it for investors? (original) (raw)

Hexaware is a leading global digital and technology services provider with AI-led digital capabilities and offices spread across various countries.

Hexaware Technologies, which was delisted from the stock exchanges in 2020, has launched an offer for sale (OFS) of Rs 8,750 crore to investors. The public offer, which opened on Wednesday and closes on February 14, is the largest IPO by an Indian tech company to date, surpassing TCS’s Rs 4,713 crore IPO in 2004.

What’s the offer price?

The issue is entirely an offer for sale of 12.36 crore shares, totalling a value of Rs 8,750 crore. The company has set a set price band of Rs 674-708 per share. It has allocated up to 50 per cent of the shares in the public issue for Qualified Institutional Buyers (QIBs), at least 15 per cent for Non-Institutional Investors (NIIs) and a minimum of 35 per cent for retail investors. Eligible employees who bid in the employee reservation portion will receive a Rs 67 per share discount.

The company was delisted from the exchanges in 2020 at a price of Rs 475 per share.

What did anchor investors get?

The company has raised Rs 2,598 crore from anchor investors, including CLSA, Government of Singapore, Monetary Authority of Singapore, JP Morgan, and Goldman Sachs, ahead of its IPO. The company announced that it allocated 3.66 crore shares at Rs 708 each, the upper price band.

The entire proceeds from the offer for sale will go to the promoter CA Magnum Holdings and Hexaware won’t get any share from it.

When is the listing?

The allotment for the IPO is expected to be finalised on February 17. Refunds will be initiated on February 18, with shares credited to the demat accounts of allottees on the same day following the refund process. The firm’s shares are anticipated to be listed on the BSE and the NSE on Wednesday, February 19.

What is Hexaware’s business?

Hexaware is a leading global digital and technology services provider with AI-led digital capabilities and offices spread across various countries. The company serves a diverse range of industries, including financial services, healthcare and insurance, manufacturing and consumer goods, hi-tech and professional services, banking, as well as travel & transportation. For the six months ended on September 2024, the company clocked a net profit of Rs 853.3 crore with a revenue of Rs 8,594.2 crore.