Hexaware Technologies Makes a Strong Comeback
Hexaware Technologies, a global IT and digital solutions provider, made a successful stock market relisting on February 19, 2025, after a four-year absence. Despite a sharp decline in the broader Nifty IT index, Hexaware’s stock surged 7.7% on its debut session, reflecting strong investor demand and confidence in the company’s future growth.
The Hexaware IPO, which was open from February 12-14, 2025, saw a subscription of 2.66 times, driven by strong institutional participation. The IPO was structured as an offer-for-sale (OFS) by CA Magnum Holdings, the investment vehicle of US private equity giant Carlyle Group, meaning the company itself did not receive any proceeds.
Hexaware Stock Performance on Relisting Day
- The stock opened at ₹745.5 on NSE, marking a 5.3% premium over the issue price of ₹708.
- Intraday high of ₹788, before closing at ₹762.55, registering a 7.7% gain.
- 1.89 crore equity shares were traded on the first day of listing.
- Market capitalization at the end of the session stood at ₹46,418.76 crore.
Hexaware’s Performance Amid Nifty IT Weakness
The Nifty IT index declined 1.3% on February 19, driven by concerns over US tariff policies and global IT spending outlook. Stocks of major IT players like TCS, Infosys, and LTI Mindtree faced selling pressure, dragging the index lower.
However, Hexaware Technologies defied the trend, delivering a positive debut as investors bet on its growth prospects in digital transformation and AI-driven IT services.
- The Nifty IT index has corrected 11.5% from its December 2024 peak but managed to stay above its 200-day Exponential Moving Average (EMA).
- Hexaware’s strong financials and demand for digital IT services helped it outperform the broader sector.
Hexaware Technologies IPO: Details & Market Impact
Hexaware Technologies’ IPO was among the biggest IT listings in recent years, raising ₹8,750 crore through an offer-for-sale (OFS), in which no fresh equity was issued.
- Promoter stake reduced: Post-IPO, CA Magnum Holdings’ stake declined to 74.71%, while the public shareholding increased to 25.29%.
- Fund utilization: Since the IPO was entirely an OFS, Hexaware did not receive any funds, as the proceeds went to Carlyle-backed CA Magnum Holdings.
- Investor sentiment: Despite global concerns over IT sector growth, strong demand from foreign portfolio investors (FPIs) and domestic institutional investors helped Hexaware’s IPO succeed.
Hexaware’s Growth Potential and Analyst Recommendations
Market analysts remain bullish on Hexaware Technologies, citing its strong financials, growing digital services business, and industry tailwinds.
- Narendra Solanki, Head of Fundamental Research at Anand Rathi Wealth, stated:
“Hexaware has significant scope for business improvement, driven by industry tailwinds and expanding scalability.”
- Abhishek Pandya, Research Analyst at StoxBox, added:
“Considering its strong fundamentals, investors should hold Hexaware for a medium to long-term perspective.”
Key Drivers for Hexaware’s Growth
1. Digital Transformation & AI Integration
Hexaware specializes in cloud computing, automation, and AI-driven IT solutions, making it a preferred partner for global enterprises undergoing digital transformation.
2. Strong Order Book & Global Clientele
With a diversified client base across banking, financial services, healthcare, and retail, Hexaware continues to see robust demand for IT services, especially in AI-powered automation and cloud-based solutions.
3. Expanding Global Presence
The company has been expanding its global footprint, securing contracts across North America, Europe, and Asia-Pacific, ensuring steady revenue growth.
Conclusion: Strong Debut Signals Investor Confidence
Hexaware Technologies’ strong relisting performance highlights investor confidence in its growth trajectory, financial stability, and market positioning in the IT sector.
- The stock’s 7.7% gain defied broader IT sector weakness, reflecting market optimism about Hexaware’s future.
- With expanding digital services, strong client demand, and global IT tailwinds, Hexaware is positioned as a long-term investment opportunity.
While the Nifty IT index remains under pressure, analysts believe Hexaware’s business model and revenue growth will help it outperform its peers in the coming years.
