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Hexaware Share Price: IPO Debuts with 5% Premium but Lacks Spark

Hexaware Technologies, a leading IT solutions provider, Hexaware share price made its stock market debut with a 5% premium, but the listing was relatively subdued. Investors had high expectations, but the broader market sentiment and muted bidding impacted the listing. Let’s dive into the details of Hexaware’s IPO, subscription status, and what experts have to say about its future.

Hexaware Technologies IPO Overview

Hexaware Technologies set its IPO price band between Rs 674-708 per share. Investors had to apply for a minimum of 21 shares and in multiples thereafter. The company successfully raised Rs 8,750 crore through this IPO, which was entirely an Offer-for-Sale (OFS) by existing promoters and shareholders. However, despite the company’s strong fundamentals, the listing failed to create a significant buzz in the market.

Hexaware Share Price Performance on Debut

The company’s shares opened at Rs 745.50 on the NSE, reflecting a 5.30% premium over its issue price of Rs 708. Similarly, on the BSE, shares debuted at Rs 731, marking a 3.25% increase. While the IPO saw some enthusiasm, it lacked the explosive debut that many investors were hoping for.

Hexaware Technologies IPO Subscription Details

The IPO was subscribed 2.66 times overall, with qualified institutional buyers (QIBs) driving most of the demand:

  • QIB Subscription: 9.09 times
  • Non-Institutional Investors (NIIs): 0.20 times (20%)
  • Retail Investors: 11% subscription
  • Employees: 32% subscription

The low participation from NIIs and retail investors signals a cautious approach, possibly due to mixed market sentiments and the company’s IPO pricing.

Grey Market Premium (GMP) Impact

Before the listing, Hexaware’s grey market premium (GMP) had completely vanished, meaning that the stock was no longer commanding a premium in the unofficial market. This was a clear indicator that the listing would not see a dramatic surge. Market experts suggest that the lack of retail investor enthusiasm and overall market uncertainty contributed to the lackluster performance.

About Hexaware Technologies

Founded in 1992, Hexaware Technologies is a global IT service provider offering cutting-edge digital solutions, including artificial intelligence (AI)-powered technology services. The company leverages AI to help businesses innovate, automate, and adapt to an AI-driven world. Despite its strong portfolio, the IPO’s lukewarm response suggests that investors are still evaluating its long-term growth potential.

Why Was Hexaware’s Listing Muted?

Several factors contributed to the subdued debut of Hexaware share price:

  1. Market Conditions: Broader market jitters affected the overall investor sentiment.
  2. Limited Retail Interest: Retail and NII participation was lower than expected.
  3. Aggressive Pricing: The IPO price range may have been too high for some investors.
  4. Lack of GMP Support: No significant grey market premium before listing.

These factors collectively influenced Hexaware’s debut, making it less than spectacular compared to other recent IPOs.

Brokerage Firms’ Take on Hexaware Technologies

While the Hexaware share price did not skyrocket on listing day, brokerage firms remain positive about its long-term potential. Experts believe that investors should consider Hexaware as a long-term bet, given its AI-driven solutions and growing digital transformation industry.

Top firms like Kotak Mahindra Capital, JP Morgan India, HSBC Securities & Capital Markets, Citigroup Global Markets India, and IIFL Securities acted as book-running lead managers for the IPO. Kfin Technologies managed the registry process.

Should You Invest in Hexaware Technologies Now?

If you missed the IPO, should you buy Hexaware shares now? Here are a few things to consider:

  • Strong Business Model: Hexaware is positioned well in the AI-driven IT services sector.
  • Long-Term Growth Potential: Despite the sluggish start, the company has robust fundamentals.
  • Market Volatility: Investors should be prepared for short-term fluctuations.

Experts suggest that long-term investors may find Hexaware share price attractive if it dips further, but short-term traders should be cautious.

Read More: Toyota Supra Price in India: Old MK4 Buying Guide

Conclusion

Hexaware Technologies IPO debut was not as explosive as some had hoped, but that doesn’t mean the stock lacks potential. The company operates in a fast-growing industry, and while the IPO response was mixed, long-term investors might still see significant gains. If you’re considering investing, focus on the company’s AI-driven technology solutions and future expansion plans rather than just its initial listing performance.

 

seoraval

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