Shares of Hexaware Technologies were listed at ₹745.5 apiece on the National Stock Exchange (NSE), a premium of 5.30% over the issue price of ₹708. The stock saw steady growth throughout the trading session and settled 1.33% higher at ₹755.40 apiece. At one point during the day, the shares advanced 3.31% to ₹770.2 apiece.
The total traded volume was 160.24 lakh shares, with a traded value of ₹1,214.25 crore. Hexaware Technologies’ total market capitalization reached ₹47,324.22 crore. The stock’s current price is ₹781.15, up 4.78% from the issue price.
The day’s open was ₹745.50, and the day’s high was ₹786.60. After listing at a 5.3% premium, shares of Hexaware Technologies jumped 3.66% to ₹772.8 apiece during peak trading hours. The company’s market capitalization reached ₹46,285.06 crores as shares rose 2.17% to ₹761.65 per unit.
Hexaware Technologies offers various services,s including business process services, digital IT operations, cloud, data and AI, application services, and cybersecurity. Notable officials of the company include Larry Quinlan (Non-Executive Chairman), Srikrishna Ramakarthikeyan (CEO & Executive Director), Neeraj Bharadwaj (Director), Sandra Horbach (Director), Julius Genachowski (Director), Lucia Soares (Director), Kapil Modi (Director), Shawn Devilla (Director), Milind Sarwate (Independent Director), Vivek Sharma (Independent Director), and Sukanya Kripalu (Independent Director). Late morning and afternoon updates showed shares trading at ₹757.40 (+1.60%) with high volumes at 10:52 AM.
Prices rose by 2% to ₹760.5 per unit at 10:34 AM, and shares climbed 1.78% to ₹758.8 apiece at 10:23 AM. Overall, shares of Hexaware Technologies closed higher, demonstrating investor confidence following the company’s successful listing on the NSE. Hexaware Technologies, a significant player in India’s IT sector, is making waves with its Rs 8,750 crore ($1 billion) initial public offering (IPO), marking the country’s largest IT services public offering to date.
However, this relisting, primarily benefiting its promoter, Carlyle Group, paints a complex picture for other investors. Carlyle Group, which took Hexaware private through a delisting process in 2020, stands to make substantial gains from the relisting. Yet, public sentiment around Hexaware’s IPO reveals a wave of skepticism.
Hexaware raises market capitalisation
A stockbroker from Rajkot voiced concerns about the high valuation, suggesting investors stay away from the overpriced offering. The grey-market premium (GMP) has plummeted to nearly zero for Hexaware, suggesting negligible listing gains.
Three equity analysts and market observers expressed reservations despite acknowledging Hexaware’s robust business model and capable management. An analyst from a Mumbai-based brokerage summed it up, saying, “Good businesses aren’t always good buys.”
Unprecedented market turbulence, sluggish business growth, and looming policy and technological uncertainties have created a challenging environment for Hexaware’s IPO. While Carlyle Group stands to gain significantly, general investors may find the offering too risky amid prevailing market conditions.
Shares of Hexaware Technologies returned to Dalal Street on Wednesday, with the software services exporter listing at around 5 percent gains on the National Stock Exchange (NSE) and then rallying further. The Mumbai-based technology company was previously listed but was taken private by Barings Asia in 2013. Hexaware was acquired by Carlyle in 2021 and has now been made public again.
Raising around ₹8,750 crore through the public listing, this was the largest IPO by an Indian software services company. The Hexaware IPO was fully an offer for sale (OFS), and CA Magnum Holdings, part of the Carlyle Group, reduced its stake in the company to 74.1 percent from 95.03 percent. Hexaware’s public float comes amid an uncertain period for the software services industry, which has seen clients cut back on spending amid a slowing economy and high inflation.
However, discretionary demand has been picking up in recent quarters. During its four years of delisting (2020-2024), Hexaware saw a 14 percent compounded annual growth in US dollar revenue, positioning it as a “scaled yet nimble mid-tier IT services firm,” according to analysts at JM Financial Institutional Securities. Analysts expect Hexaware’s dollar revenue to grow at 12 percent compounded annually over 2024-2027, with margins expected to expand by 170 basis points over the same period.
Hexaware’s focus on larger, scalable accounts and select but large verticals has been a key growth factor. Analysts at Mirae Asset Sharekhan highlight factors such as accelerated cloud adoption, increased enterprise use of data and AI, heightened cybersecurity needs, and the drive for cost optimization, likely to support Hexaware’s strong outlook. Global enterprise technology services spending is estimated to grow at a 4.6 percent CAGR, reaching nearly $4.11 trillion by 2029 from $3.28 trillion in 2024.
According to analysts at SBI Securities, Hexaware serves a diverse range of customers, including 31 Fortune 500 companies, and possesses key strengths such as AI-led digital capabilities and a flexible delivery model with a certified and skilled talent pool. Analysts remain bullish on Hexaware Technologies due to its consistent growth, strong market positioning, diversified revenue mix, and ability to capitalize on emerging technological trends.
