Hexaware Technologies Limited
Hexaware Technologies Limited
HEXAWARE
₹14,868 /-
Min. Investment
21 /- Shares
IPO Listing Details
Listed On
February 19, 25
Issue Price
₹708.00
Listing Price
₹745.50
Listing Gains
₹37.50 (+5.3%)
Min. Investment
₹14,868 /-
Apply Dates Range
Feb 12, 25 – Feb 14, 25
Price Range
₹674 – ₹708
Lot Size
21
Issue Size
₹8,750Cr
Hexaware Technologies Limited
Hexaware Technologies Limited, founded in 1992 and headquartered in Navi Mumbai, Maharashtra, is a prominent global IT services and digital transformation company. With a workforce of 32,536 employees as of September 30, 2024, it operates 39 delivery centers and 16 offices across the Americas, Europe, and Asia-Pacific, serving clients in six key sectors: Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Hi-Tech & Professional Services, Banking, and Travel & Transportation. Hexaware leverages proprietary AI-driven platforms like RapidX™, Tensai®, and Amaze® to provide end-to-end IT solutions, including cloud migration, application transformation, and business process services. Its client base includes 31 Fortune 500 companies, with no single client contributing over 10% of revenue, ensuring diversified risk.
| Founded In | 1992 |
| Industry Type | IT Consulting & Software |
| Managing Director | — |
| P/E Ratio (post) | 37.8 |
| Price-to-Sales Ratio | — |
| EBITDA | ₹1,803Cr |
| Return on Equity | 21.5% |
| Revenue Growth | 20.3% |
| Earnings per Share | ₹18.7 |
| Free Cash Flow | — |
| Debt-to-Equity Ratio | — |
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Financially, Hexaware has shown robust performance. In CY23, it reported revenue of ₹10,389.1 crore and a profit after tax (PAT) of ₹997.6 crore, achieving a revenue CAGR of 20.3% and a PAT CAGR of 15.4% from CY21 to CY23. For the first nine months of FY24, adjusted EBITDA stood at ₹1,803 crore, reflecting strong margins. The company maintains a cash balance of ₹1,346 crore as of September 2024, bolstered by its acquisition by Carlyle Group’s CA Magnum Holdings in 2021 for $3 billion from Baring Private Equity Asia. This financial stability supports its expansion plans into Tier-2 cities like Ahmedabad.
Hexaware’s initial public offering (IPO), launched on February 12, 2025, and closed on February 14, 2025, was an ₹8,750 crore offer-for-sale (OFS) by CA Magnum Holdings, reducing its pre-IPO stake of 95.03%. Priced at ₹674–₹708 per share, the IPO was subscribed 2.66 times and listed on the BSE and NSE on February 19, 2025, with listing gains of 5.3% (NSE: ₹745.50) and 3.24% (BSE: ₹731). As an OFS, Hexaware received no proceeds, with funds going to Carlyle. Post-IPO, its market capitalization was approximately ₹43,024.78 crore, with a P/E ratio of 37.8x (CY24E annualized), competitive yet premium compared to peers like Infosys.
Hexaware’s strengths include its AI innovation, global reach, and steady financial growth, underpinned by a high Glassdoor rating (3.8/5) and 90% CEO approval. However, its full OFS IPO limits growth funding, and reliance on the Americas (73.3% of H1 CY24 revenue) exposes it to regional risks. Facing competition from giants like TCS, Hexaware aims to sustain its edge through technological differentiation and operational efficiency in a dynamic IT services market.
Shareholding Pattern
| Category | Before IPO % (pre-issue) | After IPO % (post-issue) |
|---|---|---|
| Promoters | 95.03% | ~81.5% |
| Promoter’s Group | — | — |
| Public | 4.97% | ~18.5% |
| Total | 100.00% | 100% |
Promoter Holding Details
CA Magnum Holdings, a Carlyle Group affiliate, is the sole promoter of Hexaware Technologies Limited, holding a 95.03% stake before the IPO. Acquired in 2021 for $3 billion from Baring Private Equity Asia, this stake underscores Carlyle’s dominant control. The IPO, an offer-for-sale of 12,35,87,570 shares, reduces its holding by approximately 13.5%, leaving it with an estimated 81.5% post-IPO. No additional promoter group entities are identified in the shareholding pattern. This partial exit via the ₹8,750 crore IPO reflects Carlyle’s strategy to unlock value while retaining majority ownership in the AI-driven IT services firm.
| Promoter | Shares | Equity % |
|---|---|---|
| CA Magnum Holdings | ~87Cr | 95.03% |
| Total (Promoters) | 87Cr | 95.03% |
Pros
AI-Driven Innovation: Hexaware leverages proprietary platforms like RapidX™, Tensai®, and Amaze® to deliver cutting-edge digital transformation solutions, enhancing client productivity and operational efficiency.
Strong Financial Growth: The company achieved a revenue CAGR of 20.3% and PAT CAGR of 15.4% from CY21 to CY23, with revenue reaching ₹10,389.1 crore and PAT at ₹997.6 crore in CY23, reflecting robust financial health.
Global Reach: With 39 delivery centers and 16 offices across Americas, Europe, and APAC, Hexaware serves a diverse client base, including 31 Fortune 500 companies, reducing geographic dependency risks.
Diversified Revenue: No single client accounts for more than 10% of revenue, with key sectors like Financial Services (28%) and Healthcare (21%) ensuring balanced income streams.
Employee Satisfaction: A Glassdoor rating of 3.8/5 and 90% CEO approval indicate a positive work culture, supporting talent retention and productivity.
Cons
No IPO Proceeds: The ₹8,750 crore IPO was a full offer-for-sale (OFS), meaning Hexaware receives no fresh capital for growth or debt reduction, limiting expansion potential.
High Valuation: A post-IPO P/E ratio of 37.8x (CY24E annualized) is premium compared to peers like Infosys (~25x), potentially deterring value-focused investors.
Regional Revenue Concentration: The Americas contribute 73.3% of revenue (H1 CY24), exposing Hexaware to economic downturns in that market.
Competitive Pressure: Competing with larger IT firms like TCS and Infosys, with greater resources and brand recognition, poses a challenge to market share growth.
Industry Volatility: The IT services sector faces risks from global economic slowdowns and reduced tech spending, which could impact Hexaware’s growth trajectory.
Most Ask Questions?
What does Hexaware Technologies Limited do?
Hexaware provides global IT consulting and digital transformation services, embedding AI into solutions across six industries: Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Hi-Tech & Professional Services, Banking, and Travel & Transportation.
What was the size and type of Hexaware’s IPO?
It was an ₹8,750 crore offer-for-sale (OFS) of 12.36 crore shares by promoter CA Magnum Holdings, with no fresh issuance, so the company received no proceeds.
When did Hexaware’s IPO take place?
The IPO opened on February 12, 2025, and closed on February 14, 2025, with shares listed on the BSE and NSE on February 19, 2025.
How was the IPO subscription?
The IPO was subscribed 2.66 times, with Qualified Institutional Buyers (QIBs) subscribing 4.11 times, while retail and non-institutional investors showed muted interest at 0.08 times each.
How many employees does Hexaware have?
As of September 30, 2024, Hexaware employs 32,536 professionals across its global operations.
What are the risks of investing in Hexaware?
Risks include no fresh IPO capital, a high P/E valuation (37.8x), dependence on the Americas market (73.3% of revenue), competition from larger IT firms, and potential IT sector slowdowns.
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