International IT providers 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 providers aggregating as much as ₹8,750 crore with a worth band mounted from ₹674 to ₹708 per fairness share.
On the Nationwide Inventory Alternate (NSE), Hexaware shares debuted at ₹745.50, a 5 per cent premium over the value band, whereas the Bombay Inventory Alternate (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
In accordance with Carlyle, international funding agency and Hexaware’s companion, stated the corporate’s complete IPO challenge measurement of $1 billion making it the biggest IPO globally in over a decade for tech providers. Carlyle, acquired Hexaware in 2021 by a world cross-platform deal by Carlyle Companions (CP) and Carlyle Asia Companions (CAP).
Kapil Modi, Managing Director, Carlyle India Advisors, stated, “Hexaware exemplifies how we search to leverage our One Carlyle international community to assist companies scale and develop. We congratulate Hexaware’s distinctive administration staff on this milestone. Carlyle stays dedicated to partnering with the Hexaware staff because it continues to deal with shopper 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, stated, “This is a chance to deepen {our relationships} with stakeholders and reinforce our dedication to working with transparency, accountability, and a deal with delivering significant options to our shoppers.”
Satish Chandra Aluri, Lemonn Markets Desk, stated “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 worth of ₹708, and at ₹731 on the BSE, a 3.25 per cent rise. The IPO was totally a proposal on the market by promoter CA Magnum Holdings and was subscribed 2.66 instances general. Retail traders confirmed weak curiosity, subscribing to only 11 per cent of their quota. Subdued itemizing was alongside the anticipated traces on account of weak market situations 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 international locations. It affords AI-powered platforms and allows enterprises worldwide to grasp digital transformation at scale and pace by partnering with them to construct, rework, run, and optimise their expertise and enterprise processes. It serves shoppers throughout the banking, monetary providers, capital markets, healthcare, insurance coverage, manufacturing, retail, schooling, telecom, high-tech & skilled providers, journey, transportation, and logistics sectors.
market alternatives for the corporate, Bajaj Broking earlier stated, that the appliance providers 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 providers 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 providers. Additional, the worldwide enterprise platform IT providers 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 expertise companions.
JM Monetary projected its EBITDA margin to succeed in 17.1 per cent in FY27E, an growth of 170bps over CY23-27E. This improve will probably 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 comparable to 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,” stated 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 on account of development and margin growth estimates, aided by barely greater different working revenue. It initiated with a Purchase and goal worth (TP) of ₹820, implying 16 per cent upside from the higher finish of its IPO worth band.
