Hexaware Technologies, one of India's leading digital and technology services providers, made its much-anticipated stock market debut on February 19, 2025, with its initial public offering (IPO) priced at ₹708 per share. The IPO raised ₹8,750 crore, making it the largest IPO from any Indian IT services company. Despite the impressive figures, the listing was characterized by muted enthusiasm, particularly among retail investors.
Shares of Hexaware Technologies started trading on the National Stock Exchange (NSE) at ₹745.50, representing a modest premium of 5.3% over the IPO issue price. On the Bombay Stock Exchange (BSE), shares opened slightly lower at ₹731, marking a 3.25% rise at the outset. The overall performance, though positive, fell short of expectations set by previous grey market trends, indicating mixed investor sentiment.
The IPO, conducted entirely as an offer-for-sale by CA Magnum Holdings — part of the Carlyle Group — did not generate new capital for Hexaware but instead aimed at divesting existing shares. The entire allocation consisted of 12.35 crore equity shares. The decision to lower the IPO price range to between ₹674 and ₹708 per share aimed to attract institutional investors, which proved effective as qualified institutional buyers (QIBs) subscribed 9.09 times their allocated quota. The overall subscription for the IPO concluded at 2.66 times, driven predominantly by institutional interest, whereas retail investors exhibited a lackluster response, subscribing to only 11% of their respective quotas.
Market analysts attribute the tepid debut and demand from retail investors to the broader economic climate, which remains cautious amid fluctuated interests in technology stocks and unfavorable market conditions. Industry expert Satish Chandra Aluri remarked, "The subdued listing was along the expected lines due to weak market conditions and the absence of grey market premium. Despite being priced attractively relative to peers, broader market weakness led to muted retail interest and debut.”
Following the initial listing, Hexaware's stock recorded increased movement, climbing to ₹779.25 on the NSE by the afternoon, illustrating some recovery as investors began embracing long-term prospects. The company's market capitalization reached approximately ₹46,285 crore, adding to its credentials as a prominent player within India’s IT services sector.
Hexaware Technologies operates across multiple verticals, offering services such as artificial intelligence integration, data management, and cloud solutions aimed at enhancing client operations. Its focus on maintaining customer relationships and providing innovative solutions has positioned it as a key player among global digital transformation partners.
Analysts from JM Financial expressed optimism about Hexaware’s long-term growth potential, rating the stock as "BUY" with projected price targets of ₹820 based on estimated earnings growth. They highlighted Hexaware’s strategy of diversifying service offerings, particularly in premium verticals with higher spending. This diversified approach aims to stabilize growth amid challenges faced with key accounts. “Evidence of growth acceleration could narrow growth/valuation gap with competitors,” they noted.
Hexaware's IPO has been particularly poignant, marking the first major tech service IPO since Tata Consultancy Services’ IPO over two decades ago, with investors watching closely to assess the future movements of technology stocks within the wider market. After setting successful growth parameters through technology integration, Hexaware's team remains confident about future performance.
Non-Executive Chairman Joseph McLaren Quinlan emphasized the broader significance of this achievement, stating, "Going public is not just a financial milestone—it’s a bold step toward accelerating our growth, and driving innovation on a global scale. Our commitment to delivering value remains at the forefront as we gear up for this next chapter as a publicly traded company.”
With more regulatory scrutiny and market evaluations on the rise for technology companies, Hexaware's management team is expected to navigate these challenges with their existing strategic direction focused on customer-driven technological advancements. Despite a rocky start, investor interest may revive as the company continues to forge expansions and deepen relationships with customers and stakeholders.
Hexaware's strategic aim is to capitalize on its unique edge as it integrates artificial intelligence across its service offerings, allowing it to refine operational capabilities and reach new customer demographics across various industry segments. With continued investor observation, the transformation from private to public is viewed as the next logical step for Hexaware Technologies, paving the path for innovative aspirations and market growth.
Investors will be closely monitoring Hexaware's future performance, especially as it strives to overcome the initial challenges posed during its public listing phase. Their ability to adapt, innovate, and respond to market demands will significantly determine their impact on the technology service arena moving forward.