Hexaware Technologies, a leading IT company based in Mumbai and managed by the Carlyle Group, has taken a significant step by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a ₹9,950 crore IPO. Through this public offering, CA Magnum Holdings (part of the Carlyle Group) aims to dismantle its 95.03% stake in the company.
Key Highlights of the IPO:
1. Main objective of IPO:
The primary objective of Hexaware Technologies’ IPO is to list the company’s shares on the stock exchange. The shares will be sold through an “Offer for Sale” (OFS) by the promoter, CA Magnum Holdings. One more thing to note readers, the proceeds from the sale will benefit the promoter and not directly go to Hexaware Technologies itself.
2. Largest IT Sector IPO in India:
If successful, this Carlyle Group IPO would become the largest in India’s IT sector. Currently, the biggest IPO in this sector was Tata Consultancy Services (TCS), which raised ₹4,700 crore over two decades ago. Hexaware is confident to break that record with this ₹9,950 crore offering.
3. Company Profile:
Hexaware Technologies is a global leader in digital and technology services, advantage Artificial Intelligence (AI) to offer cutting-edge solutions to its clients. The company currently serves 31 Fortune 500 companies, strengthening its global presence and reputation in the industry.
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Hexaware Technologies ₹9,950 Crore IPO Key Details:
| Topic | Details |
| Company Name | Hexaware Technologies |
| Company CEO | Srikrishna Ramakarthikeyan |
| Delivery Centres | 38 Centers |
| No. Of Countries | – America – Europe – Asia-Pacific (including India and Middle East) |
| Sector | IT Sector |
| IPO Amount | ₹9,950 crore |
| DRHP Submission | Filed with SEBI |
| IPO Type | Offer for Sale (OFS) |
| Promoter | CA Magnum Holdings (Part of Carlyle Group) |
| Promoter’s Stake | 95% |
| Previous Largest IT IPO | Tata Consultancy Services (TCS) with ₹4,713 crore (Two decades ago) |
| Banks Managing IPO | – Kotak Investment Banking – Citi Global Markets – JP Morgan – HSBC Securities – IIFL Securities |
| Parent Company (Carlyle Group) | Acquired Hexaware in 2021 for $3 billion from Baring Private Equity Asia |
| Global Presence | 61 Offices globally |
| Employee Strength | 31,000 employees |
| Annual Revenue | $1.3 billion |
| Business Through Operating Segments | 6 Operating Segments 1. Financial Services 2. Healthcare and Insurance 3. Manufacturing and Consumer 4. Hi-tech and Professional Services 5. Banking 6. Travel and Transportation |
| 5 Broad Services | – Design and Build – Secure & Run – Data and AI – Optimize – Cloud Services |
Income Statement of Hexaware Technologies IPO :
Summary of Restated Consolidated Statement of Profit and Loss –
| Financial Performance Snapshot (₹ in Millions) | June 30, 2024 | June 30, 2023 |
| Total Income | 57,244 | 50,890 |
| Total Expenses | 49,870 | 44,402 |
| Profit Before Tax | 7,374 | 6,488 |
| Total Tax Expenses | 1,838 | 1,396 |
| Profit For The Period/Year | 5,536 | 5,092 |
How to Invest in the Hexaware IPO?
1. First, ensure that you have a demat account ready.
2. Apply for the IPO through a reliable broker platform (such as Zerodha, Upstox).
3. Carefully read the IPO dates and other details, and do your research.
Hexaware Technologies’ IPO could be a golden opportunity for investors in the IT sector. If you want to take advantage of this chance, be prepared and invest at the right time.
Hexaware Technologies – An Opportunity for IT Sector Investors
Hexaware Technologies’ IPO presents an exciting opportunity for investors, particularly those interested in the IT sector. With a global presence and advanced technology services, the company is well-positioned for growth. Stay informed about IPO dates and ensure you are ready to seize this potential investment.
Frequently Asked Questions (FAQs)
What is the size of Hexaware Technologies’ IPO?
Hexaware Technologies’ IPO is set at ₹9,950 crore, making it one of the largest IPOs in India’s IT sector.
Who is the promoter of Hexaware Technologies’ IPO?
The promoter is CA Magnum Holdings, part of the Carlyle Group, which currently holds 95% of Hexaware’s shares.
Why is Hexaware Technologies launching this IPO?
The IPO is aimed at listing the company on the stock exchange and divesting a significant portion of the promoter’s stake.
What services does Hexaware Technologies provide?
Hexaware offers services in AI, cloud optimization, and data analytics to its global clientele, including 31 Fortune 500 companies.
Information Source – Fortuneindia
Investment Warning: Key Considerations for Investors
1. Market Risks: Investing in the stock market involves inherent risks. There is always a possibility of losing the amount you invest.
2. IPO Investment: Before investing in an IPO, thoroughly research the company’s financial health, the promoters, and the company’s market position. There is no guarantee of the IPO’s performance.
3. No Guarantee of Profits: Past performance does not guarantee future returns. Stock prices can fluctuate based on market conditions.
4. Seek Expert Advice: If you are uncertain about investing, it’s always advisable to consult a financial expert for guidance.
5. Long-Term Perspective: View investments from a long-term perspective. Making hasty decisions for short-term gains can be risky.
Therefore, gather complete information and make informed decisions before investing.