IT services company, Hexaware Technologies made a memorable debut at the stock exchange on Wednesday, as it stock rose by sharply above the IPO price. At the NSE, Hexaware share price ended the day at Rs 755.75, equivalent to a 6.74% above the IPO price of Rs 708.
Hexaware’s IPO began on February 12 and closed on 14, but was only oversubscribed 2.79. That was interpreted as low interest by investors, but the market debut is likely to attract a significant jump in inflows. Also, the IPO was the largest ever by an Indian IT company, bringing in Rs 8,750 crore (just above $1.008 billion) to beat the Tata Consultancy’s 2022 earnings from a similar exercise.
The company has a global footprint, with a workforce of over 31,000 and a client list including 31 of the Fortune 500 companies. Hexaware Technologies (NSE: HEXT) is increasingly inclining towards the Artificial Intelligence (AI) technology. Global investment firm, Carlyle retains a controlling stake in Hexaware.
However, investor posture towards the IPO signals a potential slowdown in the share price in the coming weeks, amid rising concerns over the industry’s performance. Notably, institutional investors oversubscribed their IPO allocation by over ten times, while retail investors only took up ten percent of their portion. That could limit the Hexaware share price upside if the trend continues in the stock market.
Hexaware Share Price Prediction
Hexaware share price pivots at Rs 757.40 and action above that level will signal control by the buyers. The stock will likely move higher and encounter the first resistance at Rs 762.70. However, a stronger upward momentum could break above that level and potentially test Rs 768.90.
On the other hand, the momentum is likely to shift towards the downside if the price breaks below Rs 757.40. That could see the first support come at Rs 749.70. The upside narrative will be invalid if the price breaks below that level. An extended control by the sellers could see the price go lower and find the second support at Rs 740.55.
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