Share price of Hexaware Technologies rises 5% on listing after ₹8,750 crore IPO

Hexaware Technologies made a flattish debut on Indian stock market with India's most extensive IT public offering on Wednesday, February 19. The stock is listed at ₹745.50 on the NSE, marking a premium of 5.29% over its issue price of ₹708. Meanwhile, the BSE opened at ₹731, reflecting a 3.25% rise.

Hexaware Technologies IPO Subscription

The Hexaware Technologies IPO, valued at ₹8,750 crore, was open for subscription between February 12 and February 14. Despite a slow response, the IPO closed with 2.79 times subscription, with the Qualified Institutional Buyers (QIB) quota receiving 9.55 times bids. 

Other subscription figures include:

• Retail Investors: 11% subscription
• Non-Institutional Investors (NII): 21% Subscription
• Employees Category: 33% subscription
• Total Bids: 24.28 crore shares against 8.7 crore shares on offer

IPO Details and Stakeholder Impact

Hexaware Technologies' IPO was entirely an Offer for Sale (OFS), with 12.36 crore shares on offer. The company did not issue fresh equity, and Carlyle Group, the promoter, will reduce its stake from 95% to 74.1% post-listing.

Other key IPO aspects include:

• Retail investors' minimum lot size: 21 shares, requiring an investment of ₹14,868.
• Employee reservation: 1,404,056 shares, offered at a discount of ₹67 per share.
• Funds raised from anchor investors: ₹2,598 crore on February 11, 2025.

Company Overview

Established in 1992, Hexaware Technologies Ltd. is a global provider of digital and technology services, specializing in AI-driven innovation. The company operates multiple offshore delivery centres across India, including Chennai, Pune, Bengaluru, and Noida. Expansion plans include growth into Tier-2 cities like Ahmedabad.

Financial Performance

• Revenue growth (CY23): 12.8% in constant currency terms, surpassing LTIMindtree and Mphasis but trailing Persistent Systems (17.6%) and Coforge (14.5%).
• Regional revenue contribution:
  • Americas: 73.4%
• Key sectors driving revenue: BFSI and Healthcare, contributing nearly 50% of the top line.

Summary

Hexaware Technologies' stock made a modest debut, listing at a premium on both NSE and BSE. The ₹8,750 crore IPO saw a 2.79 times subscription, with strong demand from QIBs. As a global digital services provider, the company's growth is driven by AI innovation and expansion into Tier-2 cities. With a solid revenue performance and strong sectoral contributions, Hexaware remains a key player in the IT industry.