International IT companies firm Hexaware Applied sciences’ shares went up 10 per cent on itemizing on Wednesday. The corporate formally introduced its preliminary public providing (IPO) on February 12, 2025, the biggest IPO in IT companies aggregating as much as ₹8,750 crore with a value band fastened from ₹674 to ₹708 per fairness share.
On the Nationwide Inventory Trade (NSE), Hexaware shares debuted at ₹745.50, a 5 per cent premium over the worth band, whereas the Bombay Inventory Trade (BSE) listed the shares at a 3.14 per cent premium at ₹731. The inventory closed at ₹755.75 on the NSE and ₹763.85 on the BSE.
Largest IPO
Based on Carlyle, world funding agency and Hexaware’s associate, mentioned the corporate’s complete IPO difficulty measurement of $1 billion making it the biggest IPO globally in over a decade for tech companies. Carlyle, acquired Hexaware in 2021 by way of a world cross-platform deal by Carlyle Companions (CP) and Carlyle Asia Companions (CAP).
Kapil Modi, Managing Director, Carlyle India Advisors, mentioned, “Hexaware exemplifies how we search to leverage our One Carlyle world community to assist companies scale and broaden. We congratulate Hexaware’s distinctive administration workforce on this milestone. Carlyle stays dedicated to partnering with the Hexaware workforce because it continues to concentrate on consumer centricity and delivering differentiated worth for its prospects, and because it embarks on its subsequent part as a publicly traded firm.”
R Srikrishna, CEO, Hexaware, mentioned, “This is a chance to deepen {our relationships} with stakeholders and reinforce our dedication to working with transparency, accountability, and a concentrate on delivering significant options to our shoppers.”
Satish Chandra Aluri, Lemonn Markets Desk, mentioned “Hexaware Applied sciences debuted on the inventory market on February 19 with a modest premium. Shares opened at ₹745.50 on the NSE, up 5.3 per cent from the IPO value of ₹708, and at ₹731 on the BSE, a 3.25 per cent rise. The IPO was fully a suggestion on the market by promoter CA Magnum Holdings and was subscribed 2.66 instances general. Retail traders confirmed weak curiosity, subscribing to simply 11 per cent of their quota. Subdued itemizing was alongside the anticipated strains attributable to weak market circumstances and the absence of a gray market premium. Regardless of being priced attractively relative to friends, broader market weak point led to a muted retail curiosity and debut.”
Hexaware specialises in AI-first options, and has over 31,000 workers throughout 54 workplaces in 28 nations. It provides AI-powered platforms and allows enterprises worldwide to understand digital transformation at scale and velocity by partnering with them to construct, remodel, run, and optimise their know-how and enterprise processes. It serves shoppers throughout the banking, monetary companies, capital markets, healthcare, insurance coverage, manufacturing, retail, schooling, telecom, high-tech & skilled companies, journey, transportation, and logistics sectors.
market alternatives for the corporate, Bajaj Broking earlier mentioned, that the appliance companies market will attain ₹32.4-33.2 trillion by 2029, with a 4.8 per cent CAGR. Software program Product Engineering Providers, pushed by digital transformation and superior applied sciences, is anticipated to develop at a 13-14 per cent CAGR. The worldwide cloud and infrastructure companies market, is estimated to develop at a 7.5 per cent CAGR from 2024 to 2029, pushed by multi-cloud methods, cloud migration, safety, AI automation, edge computing, IoT integration, and administration companies. Additional, the worldwide enterprise platform IT companies market, is projected to develop at a 6.5 per cent CAGR from 2024 to 2029, pushed by expertise transformation, cloud adoption, integration, superior analytics, and steady innovation from know-how companions.
JM Monetary projected its EBITDA margin to succeed in 17.1 per cent in FY27E, an growth of 170bps over CY23-27E. This enhance shall be pushed by 120bps enchancment in adjusted EBITDA margin and discount in one-off bills aiding reported margins by 50bps.
“We imagine Hexaware has a number of conventional levers nonetheless to tug reminiscent of offshoring, utilisation, sub-con and pyramid. We count on the one-time prices of ESOP, ERP implementation, severance and acquisition-related prices to subside, driving the margin growth. Consequently, we count on EBITDA to develop at a CAGR of 17.7 per cent over CY23-27E,” mentioned JM Monetary in a report.
Additional, it anticipated revenue after tax (PAT) to develop at a CAGR of 16.3 per cent over FY23-27E, largely attributable to progress and margin growth estimates, aided by barely greater different working earnings. It initiated with a Purchase and goal value (TP) of ₹820, implying 16 per cent upside from the higher finish of its IPO value band.
