By Nandan Mandayam
(Reuters) – Shares of Hexaware Technologies rose as much as 10% in their market debut on Wednesday in a better-than-expected listing, after its $1 billion initial public offering drew interest only from institutional buyers.
The stock listed at 745.50 rupees on the National Stock Exchange, higher than its offer price of 708 rupees. The blue-chip Nifty 50 index was up 0.2% on the day.
The stock rose to 778.4 rupees, valuing it at 473 billion rupees ($5.44 billion), higher than the 430 billion rupees it was targeting.
Institutional investors were crucial in hauling Hexaware’s IPO over the line, bidding for nine times the shares on offer, while retail investors bid for only a tenth of the portion reserved for them.
That was key for the better-than-expected listing, said Arun Kejriwal of Kejriwal Research, who also noted that most large investors were not looking to push the price of Hexaware’s shares and book their profit.
“Given the near absence of retail investors in the IPO, there has been no heavy pressure on listing day,” he said.
Analysts had expected a flat debut, pointing to the indicative grey market premium. The absence of a “listing pop” in the so-called indicative grey market premium, which is in single digits, kept investors away, they said.
Should the gains hold, Hexaware would be the 11th of 26 companies that went public in 2025, whose shares are trading above their IPO price, according to data from bourse operator BSE.
Hexaware’s shares were last trading 7.3% higher at 759.50 rupees.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)
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