Hexaware Tech shares may see muted listing on NSE, BSE today despite strong IPO bidding, analysts say ‘hold’

Hexaware Tech IPO shares to list on February 19 on NSE, BSE.

Hexaware Tech shares are set to list on the NSE and BSE today, after its initial public offering (IPO) received strong investor demand. However, analysts expect a muted listing due to prevailing weakness in the broader market.

The Rs 8,750-crore Hexaware Technologies Ltd IPO, which was open for subscription between February 12-14, garnered a 2.66 times oversubscription, primarily driven by institutional investors. The company had raised Rs 2,598 crore from anchor investors.

Hexaware’s public issue is the largest in India’s IT services sector since Tata Consultancy Services’ Rs 4,700-crore IPO more than two decades ago. At the upper price band of Rs 708 per share, the company is valued at over Rs 43,000 crore.

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Analysts See Long-Term Growth Potential

While the IPO received a strong response, the stock is expected to witness a muted listing amid weak market sentiment. Analysts, however, advise investors to take a long-term view given the attractive valuations and growth potential.

"The issue is priced at a price-to-earnings (P/E) ratio of 43.1x based on CY23 earnings, which is relatively lower than its listed peers. Investors who have received an allotment may consider holding their shares for medium to long-term gains," said Abhishek Pandya, Research Analyst at StoxBox.

Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi Wealth, echoed similar views. "Hexaware has significant growth potential backed by industry tailwinds and business scalability. Investors could hold the stock for the long term, given its strong financial outlook," he said.

Hexaware Tech IPO allotment status: How to check details online via KFin Tech, NSE & BSE; Check latest GMP

Hexaware Technologies is a global digital and technology services company with a strong focus on Artificial Intelligence (AI). It has a presence across key markets, including India, the UAE, the US, Mexico, Europe, and Southeast Asia.

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