The initial public offering (IPO) of Hexaware Technologies was fully subscribed on its final bidding day, February 14, thanks to strong demand from Qualified Institutional Buyers (QIBs). The global IT services provider aims to raise ₹8,750 crore through its maiden public issue, marking the largest-ever IPO by an Indian IT company, surpassing the previous record held by Tata Consultancy Services (TCS).
As per NSE data at 1:20 PM, the IPO saw a subscription of 1.39 times, with bids for 12.75 crore shares against the 9.14 crore shares on offer. QIBs led the demand, subscribing to their allotted portion 4.75 times over. However, retail investors showed lower interest, subscribing to only 8 percent of their reserved portion, while employee participation stood at 23 percent. Non-institutional investors (NIIs) also subscribed to 8 percent of their allocation.
Grey Market Premium (GMP):
Despite the IPO’s full subscription, Hexaware’s unlisted shares were trading flat in the grey market, with no premium (0 percent) at ₹708 apiece, according to Investorgain data on February 14.
Hexaware Technologies had set a price band of ₹674-708 per share for the IPO, which was open for subscription from February 12 to February 14. The issue comprises a complete offer-for-sale (OFS) by its promoter, CA Magnum Holdings, meaning the company itself will not receive any proceeds from the listing.
The allotment of shares is set to be finalized by February 17, with trading expected to commence on the stock exchanges by February 19. Investors were required to bid for a minimum of 21 equity shares, amounting to a minimum investment of ₹14,868 at the upper price band. The IPO reserved 50 percent of its shares for QIBs, 35 percent for retail investors, and the remaining 15 percent for NIIs.
Before opening to the public, Hexaware Technologies secured ₹2,598 crore from 96 institutional investors via its anchor book on February 11. This round saw participation from global investors like CLSA, along with domestic players such as SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC AMC.
The IPO was managed by leading book-running lead managers, including Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities & Capital Markets, and IIFL Securities.
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Source: Moneycontrol
