After a four-year absence, Hexaware Technologies has re-entered the stock market, listing on February 19, 2025. The IT services company, which was delisted in 2021 following its acquisition by private equity firm Carlyle, saw a moderate yet positive start in its return to trading.
How Did Hexaware’s Stock Perform?
- NSE Opening Price: ₹745.50 (5.3% above IPO price of ₹708)
- BSE Opening Price: ₹731 (3.25% above IPO price)
- Intraday High: ₹781.65 (around 7% increase from the issue price)
Although the stock saw an early rise, the overall response remained measured, as the IPO itself did not witness overwhelming demand from retail investors.
Mixed Interest in Hexaware’s IPO
Hexaware’s Initial Public Offering (IPO), open from February 12-14, 2025, was subscribed 2.66 times overall, but participation varied across investor categories:
- Qualified Institutional Buyers (QIBs): Subscribed 9.09 times, indicating strong demand from institutional investors.
- Non-Institutional Investors (NIIs): Subscribed only 20% of their allotted quota.
- Retail Investors: Subscribed just 11%, showing limited enthusiasm from small investors.
What’s Driving Hexaware’s Market Re-Entry?
Hexaware operates in IT services and digital transformation, catering to 31 Fortune 500 companies across the US, Europe, and Asia-Pacific. Its financials reflect steady growth:
- Net Profit: ₹997.6 crore, a 12.83% increase from the previous year.
- Revenue: ₹10,389.1 crore, up 10.77% year-on-year.
While the company has a strong business presence, analysts remain cautious about whether its growth trajectory will justify its current valuation.
What Do Analysts Say?
- JM Financial has given a ‘BUY’ rating with a target price of ₹820, implying an expected upside of around 7% from current levels.
- However, some market experts suggest that Hexaware’s valuation may be on the higher side, and investors should track its quarterly earnings before making long-term decisions.
- The low retail investor participation indicates that many smaller investors are still assessing whether the stock offers long-term value.
What Should Investors Do?
The stock’s post-listing performance suggests that while institutional investors are backing Hexaware, retail investors remain cautious. The company has a strong financial foundation, but its valuation and future performance will determine its long-term market position.
For now, investors who got IPO shares may consider holding to see how the company performs in the coming months. New investors should wait for more clarity on earnings and market trends before jumping in.
As the IT sector continues to evolve, Hexaware’s ability to sustain growth and expand its client base will be crucial. Whether the stock maintains its momentum or faces volatility will depend on its execution, global demand for IT services, and investor sentiment in the coming quarters.
