Hexaware Technologies IPO GMP: What grey market trends signal ahead of IPO launch on Feb 12?

Hexaware Technologies IPO GMP: Carlyle-promoted Hexaware Technologies IPO is scheduled to open on Wednesday, February 12, and close on Friday, February 14. The details on allocation to anchor investors for Hexaware Technologies IPO will be out Tuesday, February 11. Hexaware Technologies IPO price band has been fixed in the range of ₹674 to 708 per equity share of face value of Re 1. Hexaware Technologies IPO lot size is 21 equity shares and in multiples of 21 equity shares thereafter.

The US private equity firm Carlyle has promoted Hexaware Technologies, a worldwide firm specializing in digital and technology services rooted in artificial intelligence (AI). The company leverages technology to deliver creative solutions that help their clients manage digital transformation and efficiently oversee their business functions across six sectors aligned with the industries they serve: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation.

Their offerings include five primary categories: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, which form the foundation of their services.

According to the red herring prospectus (RHP), the company's comparable listed peers include Persistent Systems Ltd, which has a P/E ratio of 84x, Coforge Ltd with a P/E of 64x, LTIMindtree Ltd with a P/E of 38x, and Mphasis Ltd, which features a P/E of 34x.

Hexaware Technologies has allocated no more than 50% of the shares in its public offering for qualified institutional buyers (QIB), at least 15% for non-institutional investors (NII), and a minimum of 35% of the offer for retail investors. Eligible employees participating in the employee reservation segment are being offered a discount of ₹67 per share, with equity shares totalling up to ₹900 million set aside for them.

The basis of allotment for Hexaware Technologies IPO shares will be determined on Monday, February 17, with refunds expected to be initiated on Tuesday, February 18. The shares will be credited to the demat accounts of the allottees on the same day after the refunds are processed. The listing of Hexaware Technologies shares on the BSE and NSE is anticipated to take place on Wednesday, February 19.

Hexaware Technologies IPO GMP today

Hexaware Technologies IPO GMP today is +3.5. This indicates Hexaware Technologies share price was trading at a premium of ₹3.5 in the grey market, 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 is indicated at ₹711.5 apiece, which is 0.49% higher than the IPO price of ₹708.

Looking at the grey market trends from the past six sessions, today's IPO GMP is showing a downward trend and is anticipated to decline further. The lowest GMP recorded is ₹3.50, while the highest GMP is ₹19.00, as indicated by experts at investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Hexaware Technologies IPO details

The Hexaware Technologies IPO consists entirely of an offer-for-sale (OFS) of shares valued at ₹8,750 crore by promoter CA Magnum Holdings, part of the Carlyle Group Inc, a global multinational corporation based in the United States. The size of the OFS has been decreased from the ₹9,950 crore stated earlier in the draft documents submitted on September 6, 2024.

As a result, all proceeds from the IPO (excluding expenses related to the offer) will be received by promoter CA Magnum Holdings, which is the selling stakeholder. CA Magnum possesses a 95.03 percent ownership stake in the company, while the remaining shares are owned by the public.

Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Capital Services serve as the book-running lead managers for the offering.

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