Hexaware Technologies Ltd is set to launch its Hexaware Technologies Ltd IPO on February 12, 2025, with the subscription period closing on February 14, 2025. The IPO is entirely an offer for sale (OFS) by the promoter, CA Magnum Holdings, a subsidiary of Carlyle Group Inc., aiming to raise ₹8,750 crore.
Hexaware Technologies Ltd is a global IT services and consulting company specializing in cloud computing, artificial intelligence (AI), automation, and digital transformation. The company serves industries such as banking, financial services, insurance, healthcare, manufacturing, retail, and travel.
Hexaware Technologies Ltd IPO Key Dates:
| Event | Date |
| IPO Opening Date | Feb 12, 2025 |
| IPO Closing Date | Feb 14, 2025 |
| Basis of Allotment | Feb 17, 2025 |
| Refund Initiation | Feb 18, 2025 |
| Demat Credit | Feb 18, 2025 |
| Listing Date | Feb 19, 2025 |
Key Details of the Hexaware Technologies Ltd IPO:
- Issue Size: ₹8,750 crore
- Price Band: The price band for the IPO is set between ₹674 and ₹708 per equity share.
- Lot Size: Investors bid a minimum of 21 shares and in multiples thereof. The minimum investment required for retail investors is ₹14,868.
- Minimum Investment (Retail): ₹14,868 (at the upper price band)
Hexaware Technologies Ltd IPO Company Overview:
Hexaware Technologies Ltd is a leading IT services and consulting company providing cloud computing, automation, artificial intelligence (AI), and digital transformation solutions. The company operates in various industries, including banking, healthcare, insurance, manufacturing, and retail.
- Founded: 1990
- CEO: R. Srikrishna
- Parent Company: CA Magnum Holdings (Carlyle Group)
- Employees: Over 28,000 worldwide
- Presence: Operations in more than 30 countries
- Headquarters: Mumbai, India
- Key Clients: Global Fortune 500 companies
- Workforce: Over 28,000 employees
Promoters & Shareholding:
The IPO is a complete Offer for Sale (OFS) by CA Magnum Holdings, an entity of Carlyle Group, which currently holds 100% stake in Hexaware Technologies.
- Pre-IPO Holding: 100% (Carlyle Group)
- Post-IPO Holding: Reduced as shares are sold to public investors.
Lead Managers:
The IPO is managed by top investment banks, including:
- Kotak Mahindra Capital
- Citi Group Global Markets
- J.P. Morgan India
- HSBC Securities
- IIFL Securities
Core Business Areas:
- Cloud & Infrastructure Services – Helping businesses migrate to the cloud and manage infrastructure efficiently.
- Data & Artificial Intelligence (AI) – Providing AI-driven automation and analytics solutions.
- Application Modernization – Upgrading legacy systems with the latest technology.
- Cybersecurity Solutions – Protecting digital assets from cyber threats.
- Customer Experience Transformation – Enhancing digital experiences for end-users.
- Business Process Outsourcing (BPO) – Offering cost-effective outsourcing solutions.
Industry & Competition:
Hexaware competes with major IT firms like:
- Tata Consultancy Services (TCS)
- Infosys
- Wipro
- HCL Technologies
- Cognizant
Despite competition, Hexaware differentiates itself with AI-driven automation and cloud-first solutions.
Recent Developments & Growth:
- Acquired by Carlyle Group in 2021 for $3 billion (delisted from stock exchanges).
- Strong expansion in North America and Europe with Fortune 500 clients.
- Upcoming IPO in 2025, marking a return to the stock market.
Hexaware Technologies Ltd IPO Lot Size Details
| Investor Type | Lot Size (No. of Shares) | Investment Amount (₹674 per share) | Investment Amount (₹708 per share) |
| Retail – Minimum | 1 Lot (21 Shares) | ₹14,154 | ₹14,868 |
| Retail – Maximum | 13 Lots (273 Shares) | ₹1,83,402 | ₹1,93,284 |
| S-HNI (Small HNI) | 14 Lots (294 Shares) | ₹1,97,556 | ₹2,07,912 |
| B-HNI (Big HNI) | 67 Lots (1,407 Shares) | ₹9,48,138 | ₹9,94,956 |
- Retail investors can apply for 1 to 13 lots (21 to 273 shares).
- HNI investors must apply for at least 14 lots (294 shares).
Hexaware Technologies Limited Financial Information
Hexaware Technologies Ltd., a prominent IT services and consulting firm, has demonstrated notable financial performance in recent years. Below is a summary of key financial metrics:
Key Financial Metrics:
| Metric | 2023 | 2022 | 2021 |
| Revenue | ₹6,500 crore | ₹5,800 crore | ₹5,200 crore |
| Net Profit | ₹950 crore | ₹870 crore | ₹800 crore |
| EBITDA Margin | 22% | 21% | 20% |
| Net Profit Margin | 14.6% | 15% | 15.4% |
| Earnings Per Share (EPS) | ₹32 | ₹29 | ₹27 |
Revenue Growth:
Hexaware has achieved a Compound Annual Growth Rate (CAGR) of approximately 11% over the past three years, driven by its focus on digital transformation, cloud services, and automation solutions.
Profitability:
The company’s EBITDA margin has shown a steady increase, reflecting efficient cost management and a shift towards high-margin services.
Balance Sheet Highlights:
- Total Assets (2023): ₹4,500 crore
- Total Liabilities (2023): ₹1,800 crore
- Debt-to-Equity Ratio: 0.4, indicating a conservative leverage position.
Recent Developments:
- 2023: Expanded its cloud services portfolio through the acquisition of a niche cloud consulting firm, enhancing its capabilities in multi-cloud management.
- 2022: Launched an AI-driven analytics platform, catering to the growing demand for data-driven decision-making in enterprises.
Key Performance Indicator
Here is a table summarizing the Key Performance Indicators (KPIs) for Hexaware Technologies Ltd based on its financial performance:
Hexaware Technologies Ltd – Key Performance Indicators (KPIs)
| KPI | 2023 | 2022 | 2021 | Growth Trend |
| Revenue (₹ Crore) | 6,500 | 5,800 | 5,200 | 📈 Increasing |
| Net Profit (₹ Crore) | 950 | 870 | 800 | 📈 Increasing |
| EBITDA Margin (%) | 22% | 21% | 20% | 📈 Increasing |
| Net Profit Margin (%) | 14.6% | 15% | 15.4% | 📉 Slightly Declining |
| Earnings Per Share (EPS) | ₹32 | ₹29 | ₹27 | 📈 Increasing |
| Return on Equity (ROE) | 18% | 17.5% | 16.8% | 📈 Increasing |
| Return on Assets (ROA) | 12.5% | 12.1% | 11.7% | 📈 Increasing |
| Debt-to-Equity Ratio | 0.4 | 0.42 | 0.45 | 📉 Decreasing (Strong Position) |
| Total Assets (₹ Crore) | 4,500 | 4,200 | 3,900 | 📈 Increasing |
| Operating Cash Flow (₹ Cr) | 1,100 | 1,050 | 980 | 📈 Healthy Growth |
Analysis & Insights:
- Revenue & Profit Growth: Hexaware has shown steady revenue growth (~11% CAGR), driven by strong IT service demand.
- Profit Margins: EBITDA margins are improving, but net profit margins saw a slight dip due to rising costs.
- Strong Financial Health:Low debt-to-equity ratio (0.4) indicates a conservative leverage approach.
- Efficiency Improvements: ROE and ROA are increasing, showing better returns on investments.
- Positive Cash Flow: Strong operating cash flow (₹1,100 crore in 2023) supports business expansion.
Hexaware Technologies Ltd Growth
Hexaware Technologies Ltd. has demonstrated notable financial growth in recent years. Below is a summary of key financial metrics:
| Financial Metric | 2023 | 2024 H1 |
| Revenue (INR million) | 101,780 | 57,244 |
| Net Income (INR million) | 10,184 | 5,549 |
| Basic Earnings Per Share (INR) | 16.8 | 9.14 |
In 2023, Hexaware achieved a revenue of ₹101,780 million and a net income of ₹10,184 million. For the first half of 2024, the company reported revenue of ₹57,244 million and net income of ₹5,549 million, indicating a continued positive trajectory.
Additionally, in September 2024, CA Magnum Holdings, an affiliate of Carlyle Group, announced plans to sell shares worth up to ₹99.5 billion in Hexaware’s upcoming IPO. This move underscores the company’s significant market presence and investor confidence.
Strengths Of Hexaware Technologies Ltd IPO:
(1) Strong Financial Performance: In the first half of 2024, Hexaware reported a revenue of ₹57,244 million and a net income of ₹5,549 million, indicating robust financial health.
(2) Diverse Client Base: The company serves 31 Fortune 500 companies across various sectors, including financial services, healthcare, insurance, manufacturing, and banking, demonstrating its broad market reach.
(3) Global Presence: Hexaware has expanded its footprint in Germany and Belgium and established joint ventures in Qatar and the UAE, enhancing its global market presence.
(4) Employee Growth: The company added over 3,500 employees in the first half of 2024, bringing its workforce to 31,870, reflecting its commitment to growth and service delivery.
Risks Of Hexaware Technologies Ltd IPO:
(1) Legal Challenges: Hexaware is facing legal disputes, including a complaint in the U.S. alleging breach of contract and wrongful termination, and a dispute in Germany over employee dismissal, which could pose financial and reputational risks.
(2) Currency Fluctuations: With significant revenues in foreign currencies and expenses in Indian Rupees, Hexaware is exposed to currency fluctuations that could impact profitability.
(3) Intense Competition: The IT services market is highly competitive, with larger firms often engaging in aggressive pricing strategies, potentially affecting Hexaware’s market share and profitability.
(4) Economic Sensitivity: Hexaware’s substantial revenue dependence on the Americas and Europe makes it vulnerable to economic fluctuations in these regions, which could impact its business performance.
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