Hexaware Technologies shares settled nearly 7 percent higher over its IPO price on the listing day. The stock settled at Rs 755.75 per share on the NSE, up 6.74 percent. Intraday, it jumped over 11 percent buoyed by strong investor interest post listing of its shares in the secondary market.
Shares of the company made an intraday high of Rs 788 per share on the NSE, rising 11.3 percent from its IPO price. The stock made a subdued listing on the stock exchanges on February 19 after a bumper subscription of over 2 times to its issue in the primary market last week.
The shares of Hexaware Technologies Ltd were listed at Rs 745.5 per share on the NSE, a premium of 5.3 percent over its issue price. On the BSE, the shares of the company were listed at Rs 731 apiece, a premium of 3.25 percent. Post listing of the shares, the total market valuation of the company stood at Rs 44,422.48 crore.
The Rs 8,750-crore Hexaware Technologies IPO, which was open for subscription between February 12-14, garnered a 2.66 times subscription. The issue had a price band of Rs 674 - 708 per share. 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.
Analysts advise investors to take a long-term view given the attractive valuations and growth potential.
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Satish Chandra Aluri, Research Analyst at Lemonn Markets noted that a subdued listing was along the expected lines due to weak market conditions and the absence of a grey market premium. Despite being priced attractively relative to peers, broader market weakness led to a muted retail interest and debut.
"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.
The Rs 8,750-crore Hexaware Technologies Ltd IPO was the largest in India’s IT services sector since Tata Consultancy Services’ Rs 4,700-crore IPO more than two decades ago.
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