Hexaware Tech IPO subscribed even as retail, HNIs, employees give thumbs down

The public issue of Hexaware Technologies sailed through on Friday as qualified institutional buyers bid aggressively even as others gave a miss. The ₹8,750-crore IPO came out with a price band of ₹674-708. It received bids for 24.28 crore shares against 9.14 crore shares on offer.

Only the QIB portion was oversubscribed at 9.09 times; retail investors and HNIs quotas received bids only 0.20 time and 0.11 times. Even the employee quota was undersubscribed at 0.32 time.

The issue was an offer for sale by CA Magnum Holdings, a part of the Carlyle Group. So the entire ₹8,750 crore raised through the IPO went to Carlyle. However, the OFS amount was reduced from ₹9,950 crore, as indicated in the draft documents submitted on September 6, 2024. CA Magnum Holdings owns a 95.03 per cent stake in the company.

Anchor investors

Ahead of the IPO, Hexaware Technologies raised ₹2,598 crore from anchor investors at ₹708 a share. Some of the marquee investors included SBI MF, HDFC MF, AXIS MF, ICICI Prudential MF, Kotak Mahindra MF, Aditya Birla Sun Life MF, UTI MF, Mirae AMC, HSBC MF, Motilal Oswal AMC, Fidelity Funds, Abu Dhabi Investment Authority, Goldman Sachs Funds, JP Morgan Funds, T Rowe Price Fund, Amundi Funds, Franklin Templeton Investment Funds, Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, CLSA Global Markets, 3P India Equity Fund, Axis Max Life Insurance, Bharti Axa Life Insurance, and so on.

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The objective of the issue is to improve the company’s visibility, strengthen its brand presence in the market, and offer liquidity to existing shareholders.

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

The company had delisted its shares in September 2020 at ₹475 a share.