In today’s briefing:
- Hexaware Technologies IPO: The Bear Case
- EQD | Nifty Index Options Weekly (January 20 – 24): Implied Vol Normalizes
Hexaware Technologies IPO: The Bear Case
- Hexaware Technologies (HEXW IN), an Indian mid-sized global IT services company, aims to raise up to US$1.0 billion.
- In Hexaware Technologies IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on mid-tier revenue growth, bottom-tier margins, low offshore mix, rising unbilled receivables/contract assets and a large post-IPO share overhang.
EQD | Nifty Index Options Weekly (January 20 – 24): Implied Vol Normalizes
- Implied vols adjusted downward by 3 points and now at 33rd percentile over the past year as Nifty ekes out a 40 bp gain.
- Seasonal trends not favorable for Nifty in the 2nd half of the month.
- Expect that vol down / spot up will re-assert itself with implied vols having normalized.
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