Hexaware Technologies: India’s largest IT services IPO hits the bourses, shares list at a premium of 5%

IT services company Hexaware Technologies made a decent debut on the stock exchanges BSE and NSE on Wednesday, February 19, listing at a premium to the upper end of the IPO price range. On BSE, Hexaware Technologies listed at ₹731 apiece against the issue price of ₹674-₹708. The stock started its trading journey at ₹745.5 apiece on NSE — a 5.3% premium to the issue price.

The largest public issue by an Indian IT services company to date, Hexaware Technologies’ ₹8,750-crore initial public offering (IPO), was open for subscription from February 12 to February 14. This offering surpassed TCS’s previous record of ₹4,713 crore set in 2004.

The IPO consisted entirely of an Offer For Sale (OFS) by private equity firm Carlyle. An Offer for Sale or OFS means that the company will not receive any proceeds from the sale of shares. Following the IPO, Carlyle’s stake in Hexaware will decrease from 95% to 74.1%.

Ahead of the IPO, Hexaware raised ₹2,598 crore from 96 institutional investors, including the Government of Singapore, the Monetary Authority of Singapore, CLSA, JP Morgan, and Goldman Sachs. The shares were priced between ₹674 and ₹708 each, valuing the company at ₹43,247 crore at the upper price band.Founded in 1992, Mumbai-based Hexaware Technologies is a global provider of IT and digital services, integrating artificial intelligence (AI) into its solutions. The company was delisted in 2020 at ₹475 per share when its promoters took it private. For the nine months ending September 2024, Hexaware reported revenues of ₹8,820 crore and a net profit of ₹853.3 crore.

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