IT services company Hexaware Technologies relisted on stock exchanges after four years, notching up handsome gains on February 19, a day when the broader Nifty IT index remained under pressure.
The stock managed to beat analysts' expectations as well as grey market indications to open at Rs 745.5 on NSE, rising 5.3 percent over the issue price of Rs 708. It touched an intraday high of Rs 788 in mid-day trade and ended the session at Rs 762.55, a gain of 7.7 percent with a volume of 1.89 crore equity shares traded.
The Nifty IT index, on the other hand, fell 1.3 percent, but defended the 200-day EMA (exponential moving average). The index has already corrected 11.5 percent from its record high seen in December 2024.
Hexaware Technologies ended the first session with a market capitalisation of Rs 46418.76 crore.
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US private equity giant Carlyle-backed Hexaware Technologies has raised Rs 8,750 crore through its public issue, which was subscribed 2.66 times during February 12-14. The IPO comprised of only an offer-for-sale by its promoter, CA Magnum Holdings, which is an investment holding company created by Carlyle to buy Hexaware.
The global digital and technology services provider did not get any IPO proceeds, as all the public issue fund was received by the selling shareholder.
Post the issue, promoter CA Magnum Holdings reduced its shareholding in the company just below 75 percent, while the public shareholding stood at 25.29 percent.
Experts have advised holding on to the stock for the longer term considering the healthy financial performance. "We believe that the company has a scope of business improvement on the back of industry tailwinds and business scalability," Narendra Solanki, Head - Fundamental Research, Investment Services at Anand Rathi Wealth said.
Abhishek Pandya, Research Analyst at StoxBox also backed holding on to positions oin Hexaware from a medium to long-term perspective.
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