Hexaware Tech's Rs 8,750-crore IPO sails through on Day 3 amid QIB push; issue sees nearly 3x subscription

Hexaware Tech

The initial public offer (IPO) of Hexaware Technologies has been fully subscribed on its last day of bidding (February 14) amid strong demand from Qualified Institutional Buyers (QIBs). The global IT service provider aims to raise Rs 8,750 crore through its maiden issue, which is set to be the largest IPO by an Indian IT company, breaking the previous record held by TCS.

The IPO saw 2.66 times subscription as it received bids for 24.28 crore shares as against the offer size of 9.14 crore shares, according to data on NSE. QIBs led the subscription race, booking their reserved portion by 9.09 times. Despite strong participation from QIBs, the issue saw muted response from the other segments. Retail investors subscribed 11 percent of their reserved portion, while that kept for employees was subscribed 32 percent. The portion reserved for non-institutional investors (NIIs) was booked 20 percent.

Grey Market Premium (GMP):

Ahead of the listing, the unlisted shares of the company were trading with a grey market premium (GMP) of 0.35 percent at Rs 710.5 apiece, as per data on Investorgain on February 14.

Issue Details:

Hexaware Technologies has set a price band of Rs 674-708 per share for the IPO which was open for subscription from February 12 to February 14. The public offer of the US private equity giant Carlyle-backed company entirely consists of an offer-for-sale by its promoter CA Magnum Holdings. Hence, the offer proceeds will go to the said promoter and the company will not receive any funds.

The IPO share allotment will be finalised by February 17, and investors can start trading in the equity shares of the company on the bourses by February 19.

Investors can bid for a minimum of 21 equity shares, requiring a minimum investment of Rs 14,868 at the upper price band. Half of the public issue size is reserved for qualified institutional investors, 35 percent for retail investors, and the remainder 15 percent for non-institutional investors.

The book running lead managers handling the public issue are Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities & Capital Markets, and IIFL Securities.

Anchor Book:

Before the IPO opened for public subscription, the company raised Rs 2,598 crore from 96 institutional investors via anchor book on February 11.

Global marquee investors like CLSA, as well as domestic institutional investors like SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC AMC and more invested in Hexaware via anchor book.