Thu Feb 20 08:02:11 UTC 2025: ## Hexaware Technologies IPO Lists with Modest Premium Despite Oversubscription by Institutional Investors

**Mumbai, February 19, 2025** – Hexaware Technologies, a global digital and technology services company, debuted on the Indian stock exchanges today with a modest premium, despite its initial public offering (IPO) being oversubscribed by institutional investors. The ₹8,750 crore IPO, the largest in the Indian IT services sector in over two decades, concluded on February 14th with a final subscription of 2.66 times. However, this oversubscription was largely driven by Qualified Institutional Buyers (QIBs), who subscribed 9.09 times their allotted portion. Retail investors and high net worth individuals (HNIs) showed significantly less enthusiasm, with subscriptions of only 0.11 and 0.20 times, respectively.

The stock opened at ₹745.50 on the National Stock Exchange (NSE), a 5.29% premium over the IPO price of ₹708, and at ₹731 on the Bombay Stock Exchange (BSE), a 3.24% premium. Intraday, the stock reached a high of ₹787.80 on the BSE and ₹780 on the NSE before closing at ₹763.85 (BSE) and ₹762.55 (NSE), representing a premium of approximately 7-8% over the issue price. This muted listing was attributed to weak overall market conditions and the absence of a strong grey market premium.

The IPO, an Offer for Sale (OFS) of equity shares by promoter CA Magnum Holdings (part of the Carlyle Group), saw all proceeds going directly to the selling shareholder. Carlyle executives expressed their pride in Hexaware’s growth and commitment to its next phase as a publicly traded company. Hexaware’s CEO, R Srikrishna, highlighted the opportunity to strengthen stakeholder relationships and operate with greater transparency.

Market analysts offered varying perspectives. One firm initiated coverage with a “BUY” recommendation and a target price of ₹820, citing a reasonable valuation relative to peers despite potential overhang from the promoter’s stake sale. The company’s market valuation at closing stood at approximately ₹46,418.76 crore.

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