Hexaware Technologies Lists At 5% Premium Over IPO Price.

Hexaware Technologies, a prominent player in the IT services sector, made its much-anticipated return to the Indian stock markets on February 19, 2025. The company's shares debuted at ₹745.50 on the National Stock Exchange (NSE), reflecting a 5.3% premium over the issue price of ₹708. On the Bombay Stock Exchange (BSE), the shares opened at ₹731, marking a 3.25% premium.

The total market valuation of the company stood at Rs 44,422.48 crore post-listing of the shares. In 2020, Hexaware was delisted from the Indian stock exchanges following its acquisition by Baring Private Equity Asia. The recent Initial Public Offering (IPO) marks its re-entry into the public domain, with the company aiming to leverage capital markets to fuel its next growth phase.

Hexaware IPO Details

Hexaware’s ₹8,750 crore IPO was a complete Offer for Sale (OFS) by its promoter, CA Magnum Holdings (a Carlyle Group entity), which sold 12.36 crore shares. The price range was set at ₹674–₹708 per share, with a minimum lot size of 21 shares.

Market Reception and Performance

The IPO received a tepid response from investors. On the final day of subscription, the Hexaware Technologies IPO was subscribed 2.79 times. The public issue was subscribed 0.11 times in the retail category, 9.55 times in the QIB category, and 0.21 times in the NII category.

Despite the subdued subscription levels, Hexaware's shares managed to list at a premium, surpassing grey market expectations, where the shares were trading flat around the issue price before listing. The stock exhibited resilience post-listing, climbing nearly 7% during the trading session. This performance indicates a cautiously optimistic market sentiment towards Hexaware's growth prospects.

Long-Term Positive Outlook

SBI Securities said Hexaware Technologies' valuations are relatively cheaper than its peers. "It has a diversified revenue mix in terms of industries, "Hexaware leverages AI to build solutions for its clients, driving productivity and utilisation improvement. The company has a healthy cash balance of Rs 1,346 crore as of September 2024," SBI Securities added, with a 'subscribe for long term' rating.

Similarly, IPO Central noted Hexaware's robust financial health, emphasizing its strong balance sheet, high liquidity ratios, and effective working capital management. They also pointed out the company's operational efficiency, which ensures that stable margins and a robust return on equity complement revenue growth.

About Hexaware & Financial Highlights

Established in 1992 and headquartered in Navi Mumbai, Hexaware Technologies has carved a niche in the global IT services landscape. The company offers a comprehensive suite of services, including application development, digital assurance, infrastructure management, and business process services.

1. Strong Revenue Growth – Revenue grew from ₹7,244 Cr (2021) to ₹10,389 Cr (2023), reflecting a ~19% CAGR.

2. Efficient Cost Management – EBITDA increased from ₹1,500 Cr to ₹1,998 Cr, maintaining stable margins despite rising costs.

3. Consistent Profitability – EBIT rose from ₹1,200 Cr to ₹1,590 Cr, even as D&A increased from ₹300 Cr to ₹408 Cr.

4. Higher PAT & EPS – PAT grew to ₹998 Cr, leading to a rise in EPS from ₹24.9 to ₹32.9, enhancing shareholder value.

Strong revenue growth, cost control, and steady profitability highlight Hexaware’s financial strength and scalability.

Conclusion

Hexaware Technologies' return to the public markets has been marked by a modest yet positive listing performance. The company's strong fundamentals, extensive global presence, and consistent service delivery position it well for future growth.

As Hexaware embarks on this new chapter, stakeholders will keenly observe its strategic initiatives and market execution in the evolving IT services landscape.