Shares of Carlyle-backed Hexaware Technologies rose as much as 10% in their debut on Wednesday, indicating growing retail interest in India's first billion-dollar IPO, which struggled to reach full subscription without the help of large institutions.
The stock began trading on the National Stock Exchange at Rs 745.50, higher than its offer price of Rs 708. The blue-chip Nifty 50 index ended marginally lower.
At the day's close of Rs 762.55, the Indian IT exporter was worth Rs 46,340 crore ($5.34 billion). Analysts had predicted a flat debut against a backdrop of single-digit premiums in the indicative grey market.
"The IPO of Hexaware is a testimony to both the quality of the asset and the depth of the Indian capital markets," said Amit Jain, managing director and head of India at US private equity firm Carlyle Group.
Institutional investors bid for nine times the number of shares available, while retail investors bid for only a tenth of the amount reserved for them due to market volatility and investor caution in the IT services sector.
According to Arun Kejriwal of Kejriwal Research, most large investors were not looking to drive up Hexaware's share price and book profits.
The IT services exporter is returning to the public market after being taken private by its former owner, Baring Private Equity Asia, over four years ago.
Carlyle, which acquired Hexaware in 2021, sold about a 21% stake in the IT services exporter through the IPO. It will retain a controlling stake in Hexaware following the listing, as it anticipates further AI-driven growth, according to Jain.
JM Financial initiated coverage of the stock with a "buy" rating and a target price of 820 rupees, citing Hexaware's "strategy of going after scalable clients with a wider bouquet of services".
