Hexawae Technologies Shares Surge Post-Listing, Gain Nearly 11% from IPO Price

Hexaware Technologies, IPO, stock listing, NSE, BSE, premium, share price, market capitalization, subscription, institutional investors, retail investors, Carlyle Group, Offer for Sale (OFS), price-to-earnings (P/E) ratio, analyst rating, trading volume, AI-driven digital services, long-term investment.

Hexawae Technologies Shares Surge Post-Listing, Gain Nearly 11% from IPO Price

Hexaware Technologies had a strong debut on the stock market, listing at a premium over its IPO price of ₹708. The stock opened at ₹745.50 on NSE and ₹731 on BSE, showing a modest 5% and 3.14% gain, respectively. Since then, it has gained further momentum, currently trading at ₹784.50 on NSE, up 2.88% as of 11:53 AM (Feb 20, 2025).

Hexaware Technologies shares closed nearly 7% higher than their IPO price on their listing day. The stock ended at ₹755.75 per share on the NSE, marking a 6.74% increase. During intraday trading, it surged over 11%, reaching a high of ₹788 per share, driven by strong investor interest.

Despite a promising start, Hexaware’s listing was relatively subdued, with shares debuting at ₹745.5 on the NSE, a 5.3% premium over the issue price, and at ₹731 on the BSE, a 3.25% premium. Following the listing, the company’s market capitalization stood at ₹44,422.48 crore.

The company’s ₹8,750-crore IPO, open for subscription from February 12 to 14, saw a subscription rate of 2.66 times. It was offered within a price band of ₹674-708 per share, and Hexaware secured ₹2,598 crore from anchor investors. This public issue was the largest in India’s IT services sector since Tata Consultancy Services’ ₹4,700-crore IPO over two decades ago.

Market analysts noted that weak broader market conditions and the absence of a grey market premium contributed to the stock’s moderate debut. However, experts believe the company’s valuation remains attractive relative to peers, with a price-to-earnings (P/E) ratio of 43.1x based on CY23 earnings. Analysts suggest that investors who secured allotments may benefit from holding the stock for medium to long-term gains.

Key Highlights:

• Market Capitalization: ₹47,673.65 crore as of Feb 20, 2025.
• Subscription Details:
  • Overall Subscription: 2.66 times.
  • QIBs (Institutional Investors): 9.09 times.
  • Retail Investors: 0.11 times (weak response).
  • Non-Institutional Investors (HNIs): 0.20 times.
  • Employees: 0.32 times.

• IPO Details:
  • Issue Size: ₹8,750 crore.
  • Price Band: ₹674-708 per share.
  • Offer Type: 100% Offer for Sale (OFS) by CA Magnum Holdings (Carlyle Group), meaning Hexaware itself won’t receive IPO proceeds.

• Performance Post-Listing:
  • First-day Close: ₹762.55 on NSE, ₹763.85 on BSE.
  • Day High: ₹787.80 (11.27% above issue price).
  • Trading Volume: 189.50 lakh shares (NSE), 11.85 lakh shares (BSE).

• Analyst Coverage:
  • JM Financial initiated coverage with a BUY rating, setting a target price of ₹820.

Analysis:

• The strong QIB demand (9.09x subscription) indicates institutional confidence in Hexaware‘s AI-driven digital services.
• Retail and HNI demand was weak, likely due to market conditions and lack of a grey market premium.
• The IPO being a complete OFS means Hexaware itself won’t see a cash influx, though it benefits from enhanced market visibility.
• Despite early listing at a modest premium, the stock has gained nearly 11% since IPO price and remains strong in trade.