IPO corner: Hexaware Technologies defies expectations, gains 8% on debut

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Shares of Hexaware Technologies surged nearly 8 per cent above their issue price on their trading debut on Wednesday, defying expectations amidst a volatile market. The stock closed at Rs 764, up Rs 56, or 7.9 per cent, from its offer price of Rs 708, valuing the company at Rs 46,419 crore ($5.34 billion).

 

The listing gains were surprising, given the lukewarm response to its Rs 8,750-crore initial public offering (IPO)—the largest ever for an IT services company in India. The IPO was subscribed 2.7 times, with most bids coming from institutional buyers.

 

Also, the gains came on a day when the NSE IT index fell 1.3 per cent due to an uncertain US market outlook.

 

The retail, high-net-worth individual, and employee portions of the IPO garnered only 11 per cent, 20 per cent, and 32 per cent subscription, respectively. The IPO was an entirely secondary sale by private equity major Carlyle, which reduced its stake in the company from 95.5 per cent to 74.7 per cent.

 

This marks Hexaware's re-entry into the domestic stock markets after its voluntary delisting in November 2020. The company was previously owned by Baring Private Equity and was acquired by CA Magnum Holdings, a Carlyle affiliate, for approximately $3 billion in 2021. 

Ireda, Tata Tech added to F&O segment 

 

The National Stock Exchange of India (NSE) has announced the introduction of futures and options (F&O) contracts on two new securities — Indian Renewable Energy Development Agency (Ireda) and Tata Technologies. Trading in these new derivatives contracts will commence from February 28. In recent months nearly 50 new stocks have got added to the F&O segment following a revision in inclusion criteria.