Thu Feb 20 05:58:33 UTC 2025: ## Hexaware Technologies IPO Debuts with Modest Gains

**Mumbai, February 19, 2025** – Hexaware Technologies, an IT services company, made its stock market debut today on the BSE and NSE, following its ₹8,750 crore initial public offering (IPO). The IPO, entirely an offer for sale by promoter CA Magnum Holdings (backed by The Carlyle Group), was subscribed 2.79 times. While the IPO was priced at ₹708 per share, shares opened with modest gains, reaching ₹745.50 on the NSE (+5.3%) and ₹731 on the BSE (+3.25%). By market close, the shares traded at ₹753.20 on the Sensex and ₹755.40 on the Nifty.

Despite the positive opening, retail investor participation was weak, subscribing to only 11% of their allotted portion. Analysts attribute this subdued response to weak overall market conditions and the absence of a significant grey market premium, even though Hexaware’s pricing was considered attractive relative to competitors.

JM Financial, in its report, noted Hexaware’s expansion of service offerings and its focus on high-spending clients as positives, projecting a 12% USD revenue increase and a 20% EPS CAGR over the next few years. However, they also highlighted potential headwinds from key clients and Carlyle’s 75% stake as potential risks, giving the stock a “Buy” rating with a target price of ₹820.

The IPO, managed by Kotak Mahindra, Citigroup, J.P. Morgan, HSBC, and IIFL Securities, saw KFin Technologies act as registrar. The proceeds from the sale will go entirely to CA Magnum Holdings, representing a reduction in Carlyle Group’s stake in the company.

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