Hexaware Technologies Makes a Comeback: Lists at 5% Premium Over IPO Price
Hexaware Technologies marked its return to the public markets with a listing at a 5.3% premium on February 19, 2025. The stock debuted at Rs 745.5 on the NSE and Rs 731 on the BSE, against an issue price of Rs 708. This performance indicates a moderate reception from investors, reflecting cautious sentiment in the market.
Hexaware IPO: Subscription and Performance
The IPO of Hexaware Technologies received a decent response, with an overall subscription of 2.66 times at the end of the bidding process. Despite the moderate listing gains, analysts believe the company's strong financial growth and AI-driven solutions make it an attractive investment for the long term.
Unlike other IPOs, Hexaware’s offering was entirely an Offer for Sale (OFS), meaning all proceeds will go to selling shareholders instead of the company. The issue has made history as the largest fundraising by an Indian IT services firm, surpassing TCS’s Rs 4,700 crore IPO from two decades ago.
What’s Driving Hexaware’s Growth?
Hexaware Technologies is a global leader in digital and technology services, with a strong focus on artificial intelligence (AI). The company provides AI-driven solutions for digital transformation across six key industry segments:
Financial Services
Healthcare & Insurance
Manufacturing & Consumer
Hi-Tech & Professional Services
Banking
Travel & Transportation
AI integration in these industries has fueled Hexaware’s business growth, positioning it as a major player in the tech sector. The company also maintains a strong financial standing, with a cash balance of Rs 1,346 crore as of September 2024.
Market Sentiment and Expert Opinions
The Grey Market Premium (GMP) before the listing suggested subdued demand, indicating uncertainty regarding the stock’s performance post-listing. However, market experts have recommended investing in Hexaware for the long term due to its strong fundamentals and AI adoption strategies.
"Hexaware leverages AI to improve productivity and efficiency for its clients. Given its healthy financial position, we recommend subscribing to the stock at the cut-off price for long-term gains," said SBI Securities in its report.
Final Thoughts
While Hexaware Technologies’ IPO listing was met with cautious optimism, its long-term growth prospects remain strong. With AI-driven solutions at its core and a robust financial standing, the company is well-positioned for sustained success in the IT sector.
Investors looking for a solid long-term play in the tech space may find Hexaware a compelling addition to their portfolio. However, as always, market risks should be carefully evaluated before making investment decisions.
Reference from:-https://economictimes.indiatimes.com/markets/stocks/news/hexaware-technologies-ipo-listing-today-what-gmp-signals-ahead-of-debut/articleshow/118371968.cms?from=mdr