Hexaware Technologies IPO — Should You Subscribe? Read Anand Rathi's Analysis

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Hexaware Technologies Ltd. will launch its initial public offering on February 12 and the offer closes for subscription of Feb. 14. An IT services and consulting firm has set the price band of Rs ⁠674-708 per share. The minimum order lot for bidding is 21 shares.

The Rs 8,750 crore IPO comprises entirely of an offer for sale with no fresh issue. The market value at upper end of price band is Rs 43,025 crore.

Objects of the Issue

1. Promoter Selling Shareholder.

2. To enhance visibility, brand value, and provide liquidity to existing shareholders.

Valuation & Outlook

Hexaware Technologies business has evolved over the last decade, with a growing set of offerings, larger and diversified customer base, wider global delivery footprint and higher focus on innovation and technology.

Its expertise is further complemented by a mix of strategic and industry-focused partners, such as ServiceNow, offers AI-powered solutions for various business functions such as human resources, IT, customer service, security and finance, and Backbase, a banking financial technology company in the Netherlands.

At the upper price band company is valuing at P/E of 43.1 times with a market cap of Rs 430,247 million post issue of equity shares and return on net worth of 22.8%.

On the valuation front, we believe that the company is fairly priced. Thus, we recommend a “Subscribe” rating to the IPO.

Click on the attachment to read the full IPO report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.