Hexaware Technologies IPO listing today. What GMP signals ahead of debut?

Thus, the GMP indicates subdued demand and cautious sentiment among investors as the absence of any premium highlights the uncertainty surrounding the stock’s performance post-listing.

However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

The GMP only serves as an indicator of demand for a company’s shares. A higher GMP reflects strong investor interest in the IPO, while a low or negative GMP suggests subdued demand.

The IPO of Hexaware Technologies witnessed a decent response with the overall subscription reaching 2.66 times at the end of the bidding process.

Hexaware Technologies, which was delisted from the exchanges in 2020, is set to re-enter the public markets with its IPO, comprising an Offer for Sale (OFS) of 12.35 crore shares. As the IPO is entirely an OFS, all proceeds from the issue will go to the selling shareholders. This will mark the largest fundraising by any IT services company in India, surpassing TCS’s Rs 4,700 crore IPO two decades ago.Analysts have recommended subscribing to the IPO from a long-term perspective, citing attractive valuations and the company’s strong financial growth driven by AI adoption, which holds significant future potential.

The company is valued at a CY24E P/E of 37.6x, based on the upper price band and post-issue capital, making it relatively cheaper compared to its industry peers.

“Hexaware leverages AI to build solutions for its clients driving improvement in productivity and gains in utilization. It has a healthy cash balance of Rs 1,346 crore as of September 2024. We recommend subscribing to the issue at the cut-off price with a long-term investment horizon,” said SBI Securities.

Hexaware Technologies is a global digital and technology services company centered around artificial intelligence (AI). The company

provides innovative solutions for customers’ digital transformation journeys and ongoing operations, embedding AI into all aspects of its services.

The company operates in six industry segments: financial services, healthcare and insurance, manufacturing and consumer, hi-tech and professional services, banking, and travel and transportation.

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