Summary of IPO Note: Hexaware Technologies Limited IPO - 11 Feb 2025

Hexaware Technologies Ltd. (HTL) is launching its IPO, aiming to raise up to ₹8750 crore, with a price band of ₹674-708 per share, opening February 12, 2025. This IPO comprises an offer for sale, targeting to provide an exit for the Promoter Selling Shareholder and enhance the company’s visibility and brand.

HTL, an AI-first digital and technology services company, caters to global clients, including Fortune 500 companies, providing innovative solutions for digital transformation and operations across various industries. The company’s focus on embedding AI into its solutions and its suite of AI-enabled platforms positions it to capitalize on the increasing demand for digital transformation in the AI-first era.

Company Overview and Operations:

• Global Reach: HTL operates across the Americas, Europe, and Asia-Pacific (including India and the Middle East), with 39 delivery centers and 16 offices in 28 countries.
• Service Portfolio: Specializes in services like Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, leveraging AI-enabled platforms such as RapidX, Tensai, and Amaze.
• Industry Focus: Serves six operating segments: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services,1 Banking, and Travel and Transportation.
• Client Base: Services a diverse range of clients, including 31 Fortune 500 organizations, with significant representation across various sectors.

IPO Details:

• Issue Size: Offer for sale of up to ₹8750 crore.
• Price Band: Rs. 674 – 708 (Employee Discount – Rs 67).
• Objectives: To achieve the benefits of listing the Equity Shares on the Stock Exchanges, enhance visibility and brand, and provide liquidity to existing Shareholders.
• Listing: BSE & NSE.
• Shareholding Pattern: Post-issue, promoters will hold 74.71%, and the public will hold 25.29%.

Competitive Strengths:

• Deep Domain Expertise: Provides comprehensive solutions across diverse industries.
• AI-Led Digital Capabilities: Utilizes in-house developed AI-enabled platforms.
• Long-Term Customer Relationships: Maintains strong relationships with a diversified blue-chip customer base.
• Global Delivery Model: Offers scalable and flexible delivery with a skilled talent pool.
• Strong Growth and Cash Generation: Demonstrates a track record of growth and profitability.

Industry Outlook:

• Growing Market: The global enterprise technology services market, particularly digital services, is experiencing significant growth.
• Digital Transformation: Increasing adoption of cloud computing, AI, data analytics, and automation drives demand for HTL’s services.
• Outsourcing Trends: The outsourced IT-BP services market is expanding, with a growing focus on digital services.