After a record year for initial public offerings in 2024, February is set to be another strong month, with the public issue of software services company Hexaware Technologies, among several issues lined up to hit the stock market.
Hexaware Technologies was once a listed entity. However, promoter Atul Nishar sold it to Barings Asia back in 2013, and the private equity firm later took it private. Then in 2021, US-based PE giant Carlyle acquired Hexaware from Barings.
So, it is a return to stock markets for Hexaware as CA Magnum Holdings, part of the Carlyle Group, is going public with the company, with plans to raise around Rs 8,750 crore at the upper end of the price band of Rs 674-708. a share.
This will make it the largest IPO in the software services space in India. The country's largest software exporter Tata Consultancy Services had gone public back in 2004 raising Rs 4,713 crore.
Heaware's issue will be a complete offer for share, where the selling promoter will get all the proceeds and the company itself has no plans to raise funds through a fresh issue of shares. Currently, CA Magnum Holdings has 95.03 per cent stake in Hexaware. Post IPO the shareholding will decline to 74.1 per cent.
"Our company expects that listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders," it said.
Hexaware's IPO will open for subscription on February 12 and close on February 14.
The company reported a net profit of Rs 853 crore on revenue of Rs 8,820 crore for the nine months ended September 2024.
Hexaware counts other mid-size IT companies like Persistent Systems, Coforge, LTIMindtree, and Mphasis among its peers.
Hexaware's issue will be among several big names going public this month. Sajjan Jindal-owned JSW Group's JSW Cement had last month received regulatory green light to go public and reports indicate the IPO could happen in February itself. This IPO is likely to be around Rs 4,000 crore, which includes a fresh issue of shares worth Rs 2,000 crore.
Electric scooter maker Ather Energy, in which Hero MotoCorp has the largest stake, had also earlier received approval from the Securities and Exchange Board of India to go public. The IPO is set to include a mix of a fresh issue of shares worth Rs 3,100 crore and an offer for sale by promoters and investors. Hero MotoCorp is not participating in the share sale.
Kedaara Capital-backed Ajax Engineering's IPO is also opening for subscription next week. This will also be a completely offer-for-sale where promoters and investors are paring their stake. The issue priced in the Rs 599-629 a share range will open for retail subscription on February 10 and close on February 12.
