Hexaware Technologies Limited has officially announced the launch of its initial public offering (IPO) for its equity shares on February 12, 2025. This IPO is set to be the largest in the IT services sector, surpassing Tata Consultancy Services’ IPO of ₹4,713 crore in 2004. During the announcement, CEO Srikrishna Ramakarthikeyan discussed the company’s return to being a listed entity after being delisted in September 2020 at a price of ₹475 per share.
“The delisting process began during the height of the Covid-19 pandemic when markets were volatile, and the main shareholder saw an opportunity to repurchase the shares they did not wish to sell at an attractive rate,” said Ramakarthikeyan. He emphasized that the company is eager to become a public entity to attract and retain top digital talent and customers.
The IPO includes an offer for sale of equity shares totaling up to ₹8,750 crore, with a price band set between ₹674 and ₹708 per Equity Share. The bidding for the IPO will commence on February 11 and conclude on February 14.
In terms of vertical performance, Ramakarthikeyan noted that the manufacturing and consumer sectors face challenges due to customer sentiments. However, he expressed optimism regarding the financial services and travel industries, which are expected to outperform the company average. The high-tech professional services, healthcare, and insurance sectors are projected to perform in line with the company average.
Ramakarthikeyan highlighted that 62% of the company’s revenues come from large enterprises with revenues exceeding $5 billion. He explained, “This percentage signifies our relevance to each other. Moreover, there is ample room for our growth. Our client base has evolved over time, indicating an increase in market share. In the span of three years, the number of clients generating around $20 million for us has nearly doubled from 6 to 11 clients by 2023, with further growth expected in 2024. The number of clients contributing $10 million has gone up from 19 to 20 customers. This demonstrates our ability to secure more business from larger companies.”
He added, “Our strategic focus is to expand further with large enterprises as they offer substantial growth potential. While we engage with smaller clients as well, maintaining a balanced approach with significant attention on larger companies is crucial.”
The article was published on February 6, 2025.
