India's Hexaware Technologies valued at $5.44 billion in market debut (updated)

Hexaware Technologies

19/02/2025 05:43

(Adds details throughout)
    By Nandan Mandayam
       Feb 19 (Reuters) - Shares of Hexaware Technologies
 HEXW.NS  rose as much as 10% in their market debut on Wednesday
in a better-than-expected listing, after its $1 billion initial
public offering drew interest only from institutional buyers.
    The stock listed at 745.50 rupees on the National Stock
Exchange, higher than its offer price of 708 rupees. The
blue-chip Nifty 50  .NSEI  index was up 0.2% on the day.
    The stock rose to 778.4 rupees, valuing it at 473 billion
rupees ($5.44 billion), higher than the 430 billion rupees it
was targeting.
    Institutional investors were crucial in hauling Hexaware's
IPO over the line, bidding for nine times the shares on offer,
while retail investors bid for only a tenth of the portion
reserved for them.
    That was key for the better-than-expected listing, said Arun
Kejriwal of Kejriwal Research, who also noted that most large
investors were not looking to push the price of Hexaware's
shares and book their profit.
    "Given the near absence of retail investors in the IPO,
there has been no heavy pressure on listing day," he said.
    Analysts had expected a flat debut, pointing to the
indicative grey market premium. The absence of a "listing pop"
in the so-called indicative grey market premium, which is in
single digits, kept investors away, they said.
    Should the gains hold, Hexaware would be the 11th of 26
companies that went public in 2025, whose shares are trading
above their IPO price, according to data from bourse operator
BSE.
    Hexaware's shares were last trading 7.3% higher at 759.50
rupees.

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H
K)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))