Hexaware Technologies announced India markets encouraging IPO listing
Hexaware Technologies Limited formally announced the opening of its initial public offering (IPO) of its equity share on February 12, 2025. This will be the largest IPO in IT services, higher than the Tata Consultancy Services’ IPO of ₹4,713 crore in 2004. During the announcement on Thursday, Srikrishna Ramakarthikeyan CEO of Hexaware, also talked about the comapny’s return as a listed company after being delisted in September 2020 at a price of ₹475 per share.
“The delisting process started during the peak of Covid-19 when markets tanked and the primary shareholder at that point saw an opportunity to buy whatever they didn’t want to sell at a pretty good rate,” said Ramakarthikeyan adding that the organisation is keen to become a public company to attract and retain the best digital talent as well as customers.
The IPO comprises an offer for sale of equity shares aggregating up to ₹8,750 crore. The price band has been fixed from ₹674 to ₹708 per Equity Share. The bidding opens on February 11 and closes February 14.
Regarding vertical performances, Ramakarthikeyan said the most challenged vertical is manufacturing and consumer owing to customer sentiments. However, he expressed confidence regarding financial services, travel will perform better than any company average while high-tech professional services, healthcare and insurance will perform roughly with the company average.
In terms of investment, Ramakarthikeyan said 62 per cent of the company revenues come from large companies with revenues above $5 billion.
“This percentage means that we are relevant to each other. More importantly, there’s headroom for us to grow. Also, our customer pyramid has changed. That’s the best evidence of us increasing market share over a period of time. On a three-year basis, the number of clients who give us about $20 million has almost doubled. It’s gone from 6 to 11 clients as of 2023. In 2024, it will go further. The number of clients who give us $10 million has gone from 19 to 20 customers. So, the industry is obviously not growing so much. So, customers are willing to trust more work with us on an ongoing basis.”
Our very deliberate focus is to try and grow more with larger companies because they have lots of headroom to grow. Somebody with a billion dollars, we may get some good short-term revenues, but there is a ceiling. It’s not like we don’t have clients and deals with smaller clients, but we want to maintain a good balance and make sure there’s enough focus on larger companies.
