Hexaware Makes History With Indias Largest IT Services IPO: Shares Gain Nearly 10% Over IPO Price Of ₹708

Hexaware Technologies, a leading IT services company, marked a successful listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Wednesday, February 19. The stock made a strong debut, listing at ₹731 on BSE, which is above the upper end of the IPO price range, and ₹745.5 on NSE, representing a 5.3% premium to the issue price.

Hexaware Technologies’ IPO Details: A Record-Breaking Offering

Hexaware’s ₹8,750-crore initial public offering (IPO) is the largest public issue by an Indian IT services company to date. This offering surpassed the previous record set by Tata Consultancy Services (TCS) in 2004, which raised ₹4,713 crore.

The IPO, which ran from February 12 to February 14, was entirely an Offer For Sale (OFS), meaning Hexaware did not receive any proceeds from the sale of shares. Instead, the offering allowed private equity firm Carlyle to reduce its stake in the company from 95% to 74.1%.

Key Details of Hexaware’s IPO

• IPO Size: ₹8,750 crore
• Price Range: ₹674 to ₹708 per share
• Listing Price on BSE: ₹731 (above upper IPO price)
• Listing Price on NSE: ₹745.5 (5.3% premium)

Before the IPO, Hexaware raised ₹2,598 crore from 96 institutional investors, including major players like the Government of Singapore, CLSA, JP Morgan, and Goldman Sachs. This private placement helped further solidify the company’s financial position and market reputation.

Company Background and Financial Performance

Founded in 1992 and based in Mumbai, Hexaware Technologies is a global leader in IT and digital services, integrating cutting-edge technologies like 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, demonstrating the company’s solid financial performance.