The corporation is selling shares at a much greater valuation than anticipated exit price in 2020.
Corporate choices are not necessarily set in stone. Consider Hexaware Technologies. The business, which delisted from Indian stock exchanges in 2020, will make an initial public offering (IPO) on February 12. Following its delisting, the firm underwent ownership changes. However, investors should consider if ownership changes alone justify higher prices.
Consider these critical numbers: Hexaware shares delisted at a trailing twelve-month earnings per share (EPS) ratio of 21 times. At the base price, the most recent public issuance valued Hexaware.
Strong Market Sentiment Boosts IPO Appeal
The IPO launch comes at a time when the Indian stock market is witnessing high valuations, making it an opportune moment for promoters to unlock value. With a robust demand for technology stocks and a positive growth outlook for the IT sector, Hexaware’s offering has garnered strong interest from institutional and retail investors alike.
Promoters Set to Reap Gains
Promoters, including Carlyle, are expected to dilute a portion of their stake, benefiting from premium pricing driven by investor warmth. Market analysts believe the move aligns with a broader trend of private equity exits amid favorable conditions, ensuring substantial returns for early investors.
Investor Expectations and Market Impact
Experts suggest that the IPO’s pricing and subscription rates will be key indicators of market sentiment. With Hexaware’s strong performance in cloud, AI, and digital transformation services, investors anticipate solid growth prospects, making this IPO a sought-after opportunity.
As the IPO unfolds, all eyes will be on subscription numbers and listing performance, determining how well Hexaware navigates market momentum to maximize gains for its promoters.
