Hexaware Technologies Limited, a leading global provider of digital and AI-driven technology services, is launching its highly anticipated Initial Public Offering (IPO) on February 12, 2025. The offering, valued at ₹8,750 crore, will remain open for subscription until February 14, 2025. With a robust growth track record and cutting-edge solutions, Hexaware is set to capture investor attention.
IPO Details and Financial Performance
The IPO will consist entirely of an Offer for Sale (OFS) by the promoter, CA Magnum Holdings (Carlyle Group), which currently holds a 95% stake in Hexaware. Post-IPO, its stake will reduce to 74.7%, while 25.3% will be available to the public. The IPO price band is set at ₹674 to ₹708 per share, with a minimum bid lot size of 21 shares. The implied post-issue market capitalization of Hexaware at the upper price band stands at ₹43,025 crore.
Hexaware has shown impressive growth over the last three years, with its revenue rising from ₹7,178 crore in 2021 to ₹10,380 crore in 2023. EBITDA grew to ₹1,581 crore in 2023, translating to an EBITDA margin of 15.2%. The company’s net profit for 2023 was ₹998 crore, showcasing consistent growth and profitability.
Company Background and Strategic Focus
Founded in 1992 as Aptech Information Systems,, Hexaware has steadily established itself as a key player in the IT services and business process services (BPS) industries. Headquartered in India, Hexaware operates 39 global delivery centers and 16 offices across the Americas, Europe, and Asia-Pacific regions. The company’s major offshore delivery centers are in cities like Chennai, Pune, Bengaluru, Noida, and Colombo, with plans to expand into Tier-2 cities, including Ahmedabad.
Hexaware’s proprietary platforms, such as RapidX for digital transformation, Tensai for automation, and Amaze for cloud adoption, allow it to offer cutting-edge services to its clients. The company caters to 31 Fortune 500 companies and serves industries such as financial services, healthcare and insurance, manufacturing, and consumer goods. Notably, 85% of its revenue comes from IT services, while BPS contributes approximately 13%.
Growth Prospects and Industry Trends
The global enterprise technology market, driven by increasing demand for AI, cloud services, and automation, is projected to grow at a compound annual growth rate (CAGR) of 7.3% between 2024 and 2029. Digital services like AI, cloud modernization, and advanced analytics will be the key growth drivers. With a strong focus on innovation, Hexaware is well-positioned to capitalize on this trend and expand its market presence further.
Risks and Challenges
While Hexaware’s growth prospects are promising, the company faces certain risks. A significant portion of its revenue—73%—comes from the North American market, making it susceptible to economic fluctuations in the region. Additionally, the company’s reliance on high-skilled talent poses a challenge in the competitive IT services landscape. Any difficulty in attracting or retaining this talent could impact operations and growth.
IPO Timeline
| Issue Opens: | February 12, 2025 |
| Issue Closes: | February 14, 2025 |
| Basis of Allotment Finalization: | February 17, 2025 |
| IPO Listing Date: | February 19, 2025 |
With its strong market position, cutting-edge technology offerings, and experienced management, Hexaware’s IPO is expected to attract significant interest from retail and institutional investors. The tech-driven focus and promising future outlook make this IPO one to watch in 2025.