Introduction to Hexaware Technologies IPO

Hexaware Technologies, a leading digital and technology services company, has made a significant return to the public markets with its Initial Public Offering (IPO). This marks the largest IPO by an Indian IT services company, surpassing previous records. The company's shares were listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on February 19, 2025.

IPO Listing Details

Hexaware Technologies' shares debuted at Rs 745.50 on the NSE, reflecting a premium of 5.3% over the issue price of Rs 708. On the BSE, the shares listed at Rs 731, representing a slightly lower premium of 3.25%. Despite the muted response, the listing performance exceeded grey market expectations, where unlisted shares were trading flat at around Rs 708[1][2].

Key Features of the IPO

• Issue Size: The IPO was valued at approximately Rs 8,750 crore, making it the largest in the Indian IT services sector[1][4].
• Offer for Sale (OFS): The IPO comprised an OFS by the promoter, CA Magnum Holdings, which is part of the Carlyle Group. All proceeds from the issue will go to the selling shareholders[2][3].
• Price Band: The IPO was priced within a band of Rs 674-708 per share, with a lot size of 21 shares[1][2].
• Subscription: The IPO saw a subscription rate of 2.66 times, with the highest demand coming from Qualified Institutional Buyers (QIBs), whose bids were oversubscribed 9.09 times[1][3].

Market Reaction and Analyst Views

The listing was marked by a lackluster response, which was somewhat expected given the subdued demand indicated by the grey market premium (GMP). However, analysts have recommended subscribing to the IPO from a long-term perspective, citing attractive valuations and the company's strong financial growth driven by AI adoption[3].

Key Points About Hexaware Technologies:

• Business Focus: Hexaware Technologies is centered around artificial intelligence (AI) and provides innovative solutions for clients' digital transformation journeys and ongoing operations[1][3].
• Industry Segments: The company operates in six key industry segments: Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Hi-Tech & Professional Services, Banking, and Travel & Transportation[1][3].
• Global Presence: Hexaware serves clients across the Americas, Europe, the Asia-Pacific region, as well as India and the Middle East[1].

Future Prospects and Challenges

As Hexaware Technologies embarks on its journey as a publicly traded company, it faces both opportunities and challenges. The company's focus on AI-driven digital solutions gives it a competitive edge over its peers. However, the IT services sector is highly competitive, and maintaining growth momentum will be crucial.

Quotes from Key Executives:

• R Srikrishna, CEO, Hexaware: "Listing on the public markets represents a significant step forward for Hexaware. This is an opportunity to deepen our relationships with stakeholders and reinforce our commitment to operating with transparency, accountability, and a focus on delivering meaningful solutions to our clients."
• Joseph McLaren Quinlan, Non-Executive Chairman, Hexaware: "Going public is not just a financial milestone—it’s a bold step toward accelerating our growth, expanding our impact, and driving innovation on a global scale."

Conclusion

Hexaware Technologies' IPO marks a significant milestone in the company's journey, reflecting its growth and commitment to innovation. As the company navigates the challenges and opportunities of being a publicly traded entity, its focus on AI and digital transformation will be key to its success.

---