Hexaware Technologies, IPO Review

When a US bank wants to move its systems to the cloud, or an insurer wants to automate claims with AI, it often hires an outside tech firm to do the heavy lifting. Hexaware is one of those firms an Indian IT services company doing that work for big clients abroad.

Incorporated back in 1992, Hexaware is a global digital and IT services company with AI at the centre of its pitch. It builds software, runs cloud migrations, handles data and AI projects, and manages back-office processes for enterprises over 90% of its revenue comes from the Americas and Europe. It counts 31 of the Fortune 500 among its clients.

The company has an interesting history. Private-equity firm Baring delisted it in 2020, Carlyle bought it in 2021, and Carlyle brought it back to the market through this IPO in February 2025. It runs AI platforms like RapidX and Tensai and employs over 31,000 people across 28 countries. Track its live price and listing data on the IPO GMP Live homepage.

Financial Snapshot

First, a quirk Hexaware reports on a January–December calendar year, not the usual April–March. On that basis, the business has grown steadily. Revenue rose from about ₹10,380 crore in 2023 to roughly ₹11,540 crore in 2024 to ₹13,819 crore in 2025. Net profit moved up too ₹998 crore, then around ₹1,150 crore, then ₹1,368 crore. It even pays a dividend, ₹8.5 a share.

So the business is doing fine. The stock, however, has been ugly, and that disconnect is the whole story here.

Listed at ₹745 in February 2025, the share ran up to ₹900, then collapsed to around ₹500 down roughly 44% from its high and about 29% below the ₹708 issue price. Profits kept rising while the stock fell hard.

Why? Two reasons. The whole IT sector has de-rated on fears of weak global tech spending and AI eating into traditional services work. And Carlyle, the private-equity owner, sold its entire offered stake in the IPO and still holds about 75%, so the market expects more selling an overhang that caps the price. My read: the earnings are solid, but the stock is fighting both a sector cloud and a known seller.

Strengths

• It's profitable and growing. Revenue reached ₹13,819 crore in 2025 with net profit of ₹1,368 crore, and the company pays a ₹8.5 per share dividend. This is a steady, cash generating IT business, not a loss-making story.
• The AI pitch has substance. Hexaware runs platforms like RapidX, Tensai and Agentverse, with over 600 ready to deploy AI agents, and sits on a deal pipeline exceeding $4 billion. That gives it a credible angle as enterprises spend on AI.
• The client base is blue-chip. It serves 31 of the Fortune 500 across banking, healthcare, manufacturing and more, with over 31,000 employees in 28 countries. Relationships of that quality are sticky and hard for rivals to dislodge.
• It's far cheaper than at listing. At roughly 22 times earnings near ₹500, the stock is much more reasonably valued than the ~₹43,000 crore it was priced at during the IPO. The starting point today is a lot less demanding.

Risks

• IPO investors are underwater. The stock listed at ₹745 and now trades near ₹500 about 29% below the ₹708 issue price and roughly 44% off its ₹900 high. Anyone who held from listing has a sizeable loss.
• Carlyle is a selling owner. This was a 100% offer-for-sale and the private-equity promoter still holds around 75%. As a financial sponsor, Carlyle will keep paring its stake over time, and that expected supply hangs over the share price.
• The IT sector faces real headwinds. Global tech spending has been soft and AI threatens to automate chunks of traditional IT services work. Mid-cap IT firms like Hexaware are more cyclical and exposed to this than the largest players.
• Margins have slipped, and the company got nothing. Profit margins narrowed to around 11–12% under PE ownership, down from 16–17% in the founder era, and because the IPO was entirely an offer-for-sale, none of the ₹8,750 crore went into the business.

Should You Buy, Hold, or Sell?

The IPO is over, and it's been a painful hold. This is a call on the stock around ₹500 about 29% below the ₹708 issue price.

Conservative investors — this is now a reasonable entry into a quality IT name at roughly 22x earnings, but the sector cloud and Carlyle overhang mean you should buy slowly, not all at once.

Moderate investors — hold if you own it; accumulate on dips toward the ₹400 low. The business is growing; the stock just needs the IT-sector mood and the selling pressure to ease.

Aggressive investors — there's a contrarian case here. If global IT spending recovers and Carlyle's selling finishes, the stock is well off its highs and could re-rate. But that's a bet on timing.

Honest take: a good business at a finally-reasonable price, weighed down by a weak sector and a selling owner patience required.

IPO Objects of the Issue

This was a 100% offer-for-sale, the largest IT services IPO in India since TCS two decades ago. The company received no proceeds the entire amount went to the promoter, Carlyle's CA Magnum Holdings.

Contact Details

Hexaware Technologies Ltd. 152, Millennium Business Park, Sector 3, A Block, TTC Industrial Area, Mahape, Navi Mumbai – 400710, Maharashtra 🌐 www.hexaware.com

IPO Registrar — KFin Technologies Ltd. 📞 040-6716 2222 / 040-7961 1000 📧 einward.ris@kfintech.com 🌐 www.kfintech.com

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This page is not investment advice. GMP is indicative only. Please consult a SEBI-registered financial advisor before investing.