Hexaware Technologies, a leading global IT services company, made a strong debut on the Indian stock markets on February 19, 2025. The company’s shares opened at ₹745.50 on the National Stock Exchange (NSE), reflecting a 5.3% premium over the issue price of ₹708. Meanwhile, on the Bombay Stock Exchange (BSE), the stock began trading at ₹731, marking a 3.25% rise.
A Landmark IPO for the IT Sector
The initial public offering (IPO) of Hexaware Technologies is significant as it is the largest by an Indian IT services company in over two decades. The ₹8,750 crore IPO was structured as an Offer for Sale (OFS), meaning that the entire proceeds will go to the selling shareholder, CA Magnum Holdings, an entity under the Carlyle Group.
Subscription and Market Response
The IPO, open for bidding from February 12 to February 14, 2025, received a moderate response from investors. The overall subscription stood at 2.66 times, with the Qualified Institutional Buyers (QIBs) segment showing the strongest demand, subscribing 9.09 times their allotted portion. However, retail participation was lower, with Non-Institutional Investors (NIIs) subscribing only 0.20 times and Retail Individual Investors (RIIs) subscribing 0.11 times their respective quotas.
Despite the lukewarm retail response, Hexaware’s listing performance exceeded market expectations. The stock saw further momentum post-listing, reaching an intraday high of ₹780 on the BSE, translating to a 10.16% increase from its IPO price.
A Look at Hexaware’s Business and Financials
Founded in 1990, Hexaware Technologies has grown into a global technology and digital services provider. The company specializes in artificial intelligence (AI) solutions and operates across key industry segments, including Financial Services, Healthcare and Insurance, Manufacturing, Hi-Tech, Professional Services, Banking, and Travel & Transportation. With a strong presence in North America, Europe, Asia-Pacific, India, and the Middle East, Hexaware serves a diverse range of clients, including 31 Fortune 500 companies.
Financially, Hexaware has demonstrated consistent growth. The company’s revenue for December 2023 stood at ₹10,389.10 crore, a notable increase from ₹9,378.8 crore in December 2022. Its profit for December 2023 was reported at ₹997.6 crore, compared to ₹884.2 crore in the previous year.
Market Confidence and Future Outlook
Hexaware’s strong listing reinforces investor confidence in the company’s strategic growth direction, particularly its focus on AI-driven solutions and digital transformation services. As the company embarks on its journey as a publicly traded entity again, investors will be closely monitoring its performance, business strategies, and global expansion plans in the competitive IT sector.
The listing of Hexaware Technologies marks a significant event in the Indian stock markets, reflecting the industry’s continued evolution and the increasing appetite for digital transformation-focused companies. Going forward, its ability to leverage emerging technologies and expand its global footprint will be key to sustaining investor interest and long-term growth.
