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PremiumHexaware Technologies IPO Day 2 Highlights: IT services firm Hexaware Technologies Ltd, which opened for subscription on February 12, was subscribed 15% on the second day of bidding.
According to the data available at BSE, the issue attracted bids for 1,38,39,483 shares compared to the 9,14,23,354 shares available.
The retail investor segment saw a 6% subscription, while non-institutional investors subscribed to 3% of their allotted quota. The qualified institutional buyers (QIBs) segment was booked at 39%, and the employee portion received a 17% subscription.
Hexaware Technologies IPO details
Investors have the option to bid for a minimum of 21 shares and in subsequent multiples. The company successfully secured Rs. 2,598 crores from anchor investors at ₹708 per equity share, according to an exchange announcement.
Hexaware Technologies is an international company specializing in digital and technology services, with artificial intelligence (AI) fundamental to its operations and a diverse clientele that includes 31 Fortune 500 firms. It caters to clients across the Americas, Europe, and the Asia-Pacific region, which encompasses India and the Middle East.
The firm organizes its operations into six segments: financial services, healthcare, and insurance; manufacturing and consumer goods; high-tech and professional services; banking; and travel and transportation.
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According to a report by brokerage Anand Rathi, the company is valued at a price-to-earnings (P/E) ratio of 43.1x at the upper price band, which translates to a post-issue market capitalization of ₹430,247 million. The return on net worth stands at an impressive 22.8%, indicating strong profitability relative to the equity base.
“On the valuation front, we believe that the company is fairly priced. Thus, we recommend a “SUBSCRIBE" rating to the IPO," said the brokerage.
The book-running lead managers for the offering are Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Capital Services.
Hexaware Technologies IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of ₹67 apiece is being offered to eligible employees bidding in the employee reservation portion, and equity shares aggregating up to ₹900 million is reserved for employees.
The firm has secured Rs. 2,598 crores from anchor investors at a price of ₹708 per Equity Share, according to a filing with the exchange. From the overall allocation of 3,66,94,914 Equity Shares to Anchor Investors, 1,31,55,849 Equity Shares (which accounts for 35.85% of the entire allocation to Anchor Investors) were distributed to 15 domestic mutual funds across a total of 34 schemes.
Hexaware Technologies IPO GMP or Hexaware IPO grey market premium is +3.5. This indicates Hexaware Technologies share price were trading at a premium of ₹3.5 in the grey market on Tuesday, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Hexaware Technologies share price was indicated at ₹711.5 apiece, which is 0.49% higher than the IPO price of ₹708.
Based on the latest analysis of grey market activities, today's IPO GMP is showing a downward trend and is expected to decline further. The minimum GMP stands at ₹3.50, while the maximum is at ₹19, according to insights from experts at investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
