Tag IT Sector

HCL Technologies Ltd
Why HCL Technologies Stock Is Falling: Key Reasons Behind the IT Sector Slump

Business and Industry Overview:  

HCL Technologies, or HCLTech, is a big IT company from India. It was started in 1976 by Shiv Nadar. He and a team of engineers made personal computers. The team sold calculators to get money for their computer project. They called the company Hindustan Computers Limited (HCL) in 1976. In 1978, HCL made India’s first home-made computer. By 1983, they also made important software. This included a system for databases, networking, and client-server technology. At first, HCL worked mainly on hardware. In 1991, HCL Technologies became its own company. It focused on software and technology services. The company changed its name to HCL Overseas Limited. They started helping businesses with IT services. In 1993, HCL helped build India’s first digital stock exchange for the National Stock Exchange (NSE). In 1994, the company changed its name again to HCL Consulting Limited. Then in 1999, it became HCL Technologies Limited. This name showed that the company was focused on technology. HCL grew and expanded to the US, Europe, and other parts of the world. They started offering services like cloud computing, cybersecurity, and helping businesses with digital changes. Today, HCL Technologies works in over 60 countries. They have more than 220,000 employees. HCL helps many companies with technology. It is still growing and is a leader in the IT industry. 

Latest Stock News: 

HCL Technologies Ltd. (HCLTech) has recently seen some changes in its stock price. On April 3, 2025, the stock dropped by 3.71%. It closed at ₹1,470.80. This fall was part of a larger downturn in the Indian stock market. The BSE SENSEX Index also dropped by 0.42% to 76,295.36. HCLTech’s stock is now 26.86% lower than its highest price in the last year. Its 52-week high was ₹2,011.00 on January 13, 2025. Earlier in the week, on April 1, 2025, HCLTech’s stock fell by 3.41%. It closed at ₹1,540.00. The increase in trading volume shows that investor sentiment has changed. The previous week, on March 28, 2025, the stock fell by 2.20%, closing at ₹1,590.95. At that time, it was 20.89% below its 52-week high. These drops show that investors are watching HCLTech closely. They are considering both the broader market conditions and the company’s performance. 

Despite these stock drops, HCLTech has received recognition in two important reports. In the HFS Horizons: Generative Enterprise Services, 2025 report, HCLTech was praised for its strong work in AI and Generative AI (GenAI). The company has solutions like AI Force and AI Foundry. These help businesses use AI in a better way. HCLTech works with partners to create new GenAI products. This shows its leadership in helping businesses change digitally. In the IDC MarketScape: Worldwide Adobe Experience Cloud Professional Services, 2024–2025, HCLTech was named a leader for its work with Adobe tools. The company helps businesses create more personalized customer experiences. It improves customer satisfaction and business operations. HCLTech has a global network of labs and centers. These centers help clients get the best results with Adobe tools. Both reports show that HCLTech is strong in AI, GenAI, and customer experience, even though its stock has fallen. 

Potentials: 

HCL Technologies (HCLTech) has many plans for the future. The company wants to focus on AI (artificial intelligence) and GenAI (generative AI). These technologies help businesses work smarter. AI can make things automatic and help businesses make better choices. GenAI can create new things like text, pictures, and ideas from data. HCLTech plans to use these technologies to help businesses save money and improve their services. HCLTech is also focusing on cloud computing. Cloud computing means storing data and using software over the internet. This helps businesses avoid costs and be more flexible. HCLTech wants to offer more cloud services to help businesses grow and change easily. The company wants to build more partnerships with other companies. These can be big tech companies or smaller startups. By working together, HCLTech can offer better solutions and ideas. This will help businesses solve problems and grow faster. HCLTech is looking to expand into new markets. These are countries where businesses are growing quickly. These countries need technology services, and HCLTech wants to provide them. This will help HCLTech reach more customers and grow globally. The company is also putting money into research and development. This means they are working on creating new tools and technologies. These tools will help businesses stay ahead in the fast-changing world of technology. With better tools, businesses can adapt and stay competitive. HCLTech cares about sustainability. They want to help businesses be more eco-friendly. This means using less energy and reducing waste. HCLTech plans to offer solutions that help businesses meet environmental goals. This will help the planet and make businesses follow the new rules about the environment. 

In short, HCLTech wants to help businesses use AI, GenAI, and cloud services. They want to create better tools and build partnerships with other companies. HCLTech also wants to help businesses grow in new markets and be more eco-friendly. Their goal is to lead in technology and help businesses succeed. 

Analyst Insights: 

  • Market capitalisation: ₹ 3,86,595 Cr. 
  • Current Price: ₹ 1,425 
  • 52-Week High/Low: ₹ 2,012 / 1,235 
  • P/E Ratio: 22.6 
  • Dividend Yield: 3.79% 
  • Return on Capital Employed (ROCE): 29.6% 
  • Return on Equity (ROE): 23.3%

HCL Technologies is a strong company to invest in for several reasons. First, the company is growing steadily. Its revenue has gone up by around 16% over the past year. This shows that the company is doing well and getting bigger. It also makes a good profit. The company’s profit margin is 22%, which means it keeps a good portion of its income after covering costs. 

One big advantage is that HCL Technologies has no debt. This is good because it doesn’t need to worry about paying interest on loans. It can focus on growing the business. Also, the company shares its profits with investors by paying good dividends. Its dividend yield is 3.79%, which is higher than many other companies. This is good for people who want regular income from their investments. 

The company is one of the biggest IT firms in India. It is also becoming more popular worldwide. Its brand value has increased by 16%, showing that more people know about it and trust it. HCL Technologies is using its money well, as shown by its Return on Capital Employed (ROCE) of 29.6% and Return on Equity (ROE) of 23.3%. These numbers show that it is making good use of its resources and making money for its investors. 

In simple terms, HCL Technologies is a safe and steady company. It has strong growth, makes good profits, has no debt, and shares its earnings with investors. These factors make it a good option for long-term investment. 

Tech Mahindra Ltd
Tech Mahindra Partners with ServiceNow to Revolutionize Broadband Solutions

Business and Industry Overview:  

Tech Mahindra is a big company. It helps other companies grow with technology. It gives many digital services. It works in more than 90 countries. It has more than 150,000 workers. It has over 1100 customers around the world. It helps with many things. It makes software. It helps with cloud services. It works with data. It uses AI (Artificial Intelligence). It gives 5G services. It also protects systems from online danger (cybersecurity). It gives BPO services too. It works with many industries. It helps banks, hospitals, mobile companies, factories, and shops. It helps these companies grow fast. It gives smart and new ideas. It helps them get ready for the future. Tech Mahindra wants to make the world better. It wants people, companies, and society to grow together. It wants a world that is fair and full of good chances. Tech Mahindra is part of the Mahindra Group. The Mahindra Group started in 1945. It is one of the biggest groups in India. It has 260,000 workers. It works in over 100 countries. The Mahindra Group makes tractors and cars. It is the biggest tractor company in the world. It also works in farming, clean energy, money services, IT, transport, hotels, and houses. Mahindra Group and Tech Mahindra care about people and the planet. They want to do good things for nature and society. They follow ESG rules. This means they care for the Environment, Social good, and strong Governance. They want to help everyone grow. They want people and companies to Rrise and do well. 

Latest Stock News: 

Tech Mahindra’s stock has been going up and down. On April 1, 2025, it went down by 1.68%, closing at ₹1,394.20. But it did better than the market, which went down by 1.80%. On April 2, the stock went up by 2.11%, closing at ₹1,423.65. It did better than other companies on that day. On April 3, the stock went down by 3.79%, closing at ₹1,369.65. It did worse than the market that day. Now, on April 4, it is trading at ₹1,326.00. The company will have a meeting on April 23-24, 2025, to talk about its results for the last three months of the year. The company might also give a second dividend. This news could change the stock price. Investors are waiting for this news to decide what to do next with the stock. 

Potentials: 

Tech Mahindra has big plans for the future. They want to grow a lot by 2027. They aim to earn more money than other IT companies. They will focus on big industries like banking, healthcare, telecom, and manufacturing. These industries have a lot of potential. The company also wants to increase its profits. They plan to save $250 million every year by reducing costs. This saved money will be used to invest in new technologies. Technologies like Artificial Intelligence (AI) and automation will help them work better and faster. Tech Mahindra also plans to hire more skilled workers. They will train their employees to have the right skills. The company wants to keep customers happy by offering better services. With these goals, Tech Mahindra hopes to be a stronger and more successful company by 2027. 

Analyst Insights: 

  • Market capitalisation: ₹ 1,29,492 Cr. 
  • Current Price: ₹ 1,323 
  • 52-Week High/Low: ₹ 1,808 / 1,163 
  • P/E Ratio: 34.6 
  • Dividend Yield: 2.84%
  • Return on Capital Employed (ROCE): 11.9%
  • Return on Equity (ROE): 8.63%

Tech Mahindra is a strong company with good financial results. It made a huge profit increase of 92.63% in the last quarter, which shows it is doing well. The company has a Return on Equity (ROE) of 8.63% and Return on Capital Employed (ROCE) of 11.9%. These numbers tell us that the company is using its money smartly to make profits. 

One of the best things about Tech Mahindra is that it has very little debt. This is good because it means the company does not owe much money and can manage its finances better. 

Even though the sales growth has been slow (8.4%) over the last five years, the company is working in areas that are growing fast, like cloud computing, AI, and digital services. This means the company has a good chance of growing in the future. 

Tech Mahindra also pays a dividend of 2.84%, which is attractive for investors who want regular income from their investment. However, its P/E ratio is 34.6, which is a bit high, meaning the stock might be expensive compared to other similar companies. 

In short, even though the stock may seem pricey, the company’s strong results and future growth plans make it a good option for investors looking to hold the stock long term.

Persistent Systems ltd
Persistent Systems Ltd: Business Overview, Stock Analysis & Growth Prospects in 2025

Business and Industry Overview:  

Persistent Systems Ltd is a large technology company based in Pune, India. It helps businesses by offering services like cloud computing, big data analytics, endpoint security, and the Internet of Things (IoT). The company also specializes in software product engineering. These services help businesses improve their technology, security, and digital operations. The company was founded in 1990 by Anand Deshpande. He was a former employee of Hewlett-Packard. Persistent started with a small investment of just $21,000. In 2000, Intel Capital invested $1 million in Persistent Systems. This investment helped the company grow. In 2005, Persistent raised $18.8 million from Norwest Venture Partners and Gabriel Venture Partners. In 2010, Persistent became a public company. It listed its shares on the stock exchanges in India. This allowed the public to buy shares of the company. Persistent started growing even more by acquiring other companies. In 2011, it acquired Infospectrum India, which was based in Nagpur. In 2012, it acquired Openwave’s location business. In 2015, Persistent bought the digital content management business of Akumina. The next year, in 2016, its product division, Accelerite, bought Citrix’s CloudPlatform and CloudPortal Business Manager. In the same year, Persistent started a new service for IBM’s Watson IoT platform. Persistent continued its growth in 2017 by acquiring Parx Werk, a Swiss company. In 2019, it joined Siemens’ MindSphere program to offer Industrial IoT services. That same year, Persistent acquired Youperience, a company that helped businesses use Salesforce. In 2020, Persistent acquired Capiot Software, a software company based in the U.S. In 2021, Persistent bought Sureline Systems, a company that helps with cloud migration. It also acquired Software Corporation International (SCI) and Fusion360 for $53 million. Later in 2021, Persistent also acquired Shree Partners, a company that managed IT and cloud services in New Jersey. Persistent’s growth didn’t stop there. In February 2022, it acquired Data Glove, an American consulting firm, for $90.5 million. In March 2022, it acquired MediaAgility, a cloud computing services company, for $71.71 million. In 2024, Persistent acquired Starfish Associates, a company that develops software for enterprise communications. In September 2024, Persistent also announced its plan to acquire Arrka, a data privacy management firm, for Rs 14.4 crore. Through all these acquisitions, Persistent Systems has become a leader in technology services. The company helps businesses around the world improve their technology, security, and digital solutions. Persistent’s services are used by many industries, such as healthcare, finance, and retail. 

The technology services industry is growing very fast. More businesses are using digital solutions like cloud computing, data management, and cybersecurity. This makes the demand for these services rise. In 2022, big Indian IT companies like TCS, Wipro, and Infosys were expected to offer more than 1 lakh jobs because of this high demand. By 2025, the Indian software industry is expected to grow to Rs. 8,62,000 crore (US$ 100 billion). Indian companies are also expanding to other countries. This helps them grow their businesses around the world. The IT and business services market in India is expected to reach Rs. 1,71,796 crore (US$ 19.93 billion) by 2025. In 2024, India’s IT spending is expected to grow by 11.1%. It will reach Rs. 11,89,560 crore (US$ 138.6 billion). Indian IT companies are setting up offices in many countries. These offices, or delivery centres, help them serve clients around the world. The IT and Business Process Management (BPM) industry in India works with many different sectors. These include banking, telecom, and retail. Indian companies are also working with international companies to deliver services all over the world. India’s tech industry is expected to double its revenue by 2030. It is predicted to reach Rs. 43,10,000 crore (US$ 500 billion). India has a lot of talented tech workers. India’s digital skills are better than many other countries in the BRICS group, except China. Japan has also increased its investment in India’s IT sector. From 2016 to 2020, Japanese investments grew four times, reaching US$ 9.2 billion. The Indian government is helping the tech industry grow. In the 2025-26 budget, the government set aside Rs. 2,000 crore (US$ 232 million) to support artificial intelligence (AI). The government also plans to set up a Centre of Excellence in AI for Education. This will have Rs. 500 crore (US$ 58 million) to improve education using AI. India is one of the cheapest countries in the world for data. It costs only Rs. 10 per GB (US$ 0.12). This makes India more competitive in the global market. The government is focusing on important technologies like AI, blockchain, and cybersecurity. It is also encouraging the growth of IT hardware manufacturing. The government has a scheme called the production-linked incentive to support this growth. In summary, India’s technology services industry is growing quickly. India is becoming a leader in the global tech market. There are more job opportunities, rising investments, and strong government support. 

Latest Stock News: 

Persistent Systems received a warning from the National Stock Exchange (NSE) because the company did not inform the stock exchanges on time about the resignation of a senior management person. According to the rules, the company should have told the stock exchanges within 24 hours of the resignation. They should also have submitted the resignation letter within 7 days. Persistent Systems missed these deadlines. As a result, the NSE sent a warning. They told the company to be more careful in the future and follow the rules. Persistent Systems replied that this mistake will not affect its business. They promised to follow the rules better in the future. 

On April 1, 2025, Persistent Systems’ stock dropped by up to 5%. Other big IT companies like Infosys and TCS also saw their stock prices fall. The drop happened before U.S. President Donald Trump’s “Liberation Day” announcement. This announcement caused changes in markets all over the world. Even though the stock price dropped recently, Persistent Systems had strong performance over the past year. In its latest report for the third quarter, which ended on December 31, 2024, the company reported a net profit of ₹373 crore. This was a 30.4% increase compared to the same period last year. This growth happened because of the company’s focus on AI-led services and platform-driven solutions. 

Even with the recent drop, Persistent Systems’ stock has gone up by about 80.37% over the past year. This shows that the company is doing well overall. But stock prices can go up and down quickly. Many factors, like market conditions and the company’s performance, can affect them. Investors should research carefully or speak to financial advisors before deciding to invest in any stock. 

Potentials: 

Persistent Systems has clear plans for the future. The company wants to focus on new technologies. These include Artificial Intelligence (AI), Cloud Computing, and the Internet of Things (IoT). AI helps machines make decisions. Cloud Computing allows businesses to store data online. IoT connects devices to the internet for better communication. The company also wants to grow in other countries. They are looking at markets in the U.S. and Europe. These areas have big opportunities. By improving their services, Persistent hopes to attract more customers. They believe better AI and cloud services will help them stand out. Persistent Systems will also buy other companies. This will help them learn new skills. It will also allow them to enter new markets. By buying other companies, they can improve what they already do. The company will keep improving its current services. These services include helping businesses move to the cloud and update their technology. This will help them stay competitive and meet customer needs. The company also knows it is important to keep its workers skilled. They will offer training programs to help employees learn the latest technologies. This will help workers stay up-to-date and be ready for new challenges. In short, Persistent Systems wants to grow. They plan to use new technologies, expand in other countries, buy companies, improve current services, and train employees. Their goal is to stay ahead in the tech world and meet customer needs. 

Analyst Insights: 

  • Market capitalisation: ₹ 82,959 Cr.. 
  • Current Price: ₹ 5,318 
  • 52-Week High/Low: ₹ 6,789 / 3,232 
  • P/E Ratio: 62.9 
  • Dividend Yield: 0.49%
  • Return on Capital Employed (ROCE): 29.2% 
  • Return on Equity (ROE): 24.0% 

Persistent Systems has been growing steadily. In the last five years, its profits have increased by 27% each year. This is a good sign. It shows that the company is doing well and making more money each year. This kind of growth is attractive to investors. The company also has a solid return on equity (ROE) of 24%. This means it is making good use of the money invested by its shareholders. A high ROE means the company is effective at turning its investments into profits. Investors like this because it shows the company is using its resources well. Another reason to like Persistent Systems is that it is working in fast-growing fields like artificial intelligence (AI), cloud computing, and digital transformation. These are important areas, and many businesses are looking for solutions in these fields. Because of this, Persistent Systems could see more growth in the future. The company also has partnerships with big names like Salesforce and AWS. These partnerships can help the company get more business and reach new customers. Persistent Systems also pays a dividend to its shareholders. This means the company gives a part of its profits back to investors. The company has been paying about 37.5% of its profits as dividends. While this is not a very high dividend, it still provides regular income to investors. People who own the stock can earn some money even if they don’t sell their shares. However, there is a downside. The stock price of Persistent Systems is high. The company has a price-to-earnings (P/E) ratio of 62.9. This is much higher than other large companies like TCS (P/E of 26.3) and Infosys (P/E of 23.3). The P/E ratio tells you how much investors are willing to pay for each rupee of the company’s earnings. A high P/E ratio means that investors are expecting the company to grow a lot in the future. But it also means that the stock is more expensive. If the company doesn’t meet these high growth expectations, the stock price might drop. Because of this, the stock might be overvalued right now. If the company doesn’t grow as fast as expected, it could be risky for new investors. Even though the company has great growth potential, its high stock price makes it less attractive at the moment. 

In conclusion, Persistent Systems is a strong company with good growth prospects. It is doing well in its business and is involved in fast-growing industries. It has a good return on equity and pays a solid dividend. However, its high stock price makes it a bit risky. If you already own the stock, you can hold it and see if it continues to grow. But if you are thinking of buying more, you should be cautious because the stock is expensive right now. Therefore, the recommendation is to hold the stock for now. 

Wipro Ltd: Institutional Investors Under Pressure as Holdings Drop 3.9%

Business and Industry Overview: 

Wipro Ltd. is a global information technology, consulting, and business process services (BPS) company. It is the 4th largest Indian player in the global IT services industry behind TCS, Infosys, and HCL Technologies. It is based in Bengaluru. It provides IT services, consulting, and business process solutions. The company operates in 167 countries and offers services in cloud computing, cybersecurity, digital transformation, artificial intelligence (AI), robotics, and data analytics. Wipro started in 1945 as Western India Vegetable Products Limited, a cooking oil company. In the 1980s, it expanded into technology and software services. By the 1990s, it had become one of India’s top IT service providers. During the dot-com boom, Wipro was India’s largest company by market value. In 2004, its annual revenue exceeded $1 billion. 

The Information Technology (IT) &  Business Process Management (BPM) sector plays a crucial role in India’s economy, contributing 7% to the GDP as of FY24. India has one of the largest internet consumer and, at the same time, has the lowest internet costs globally. With this, India is next for the next phase of IT growth. The Digital India Programme has strengthened digital infrastructure and access, driving rapid digital adoption through government initiatives, private sector innovation, and emerging digital applications. These advancements are creating economic value and enhancing citizen empowerment. India’s global standing in innovation has also improved, ranking 40th in the 2022 Global Innovation Index. Hexaware Technologies provides IT services in business process services, digital IT operations, cloud, data & AI, application services, and cybersecurity. The company operates across 50 offices in 19 countries, with a diverse workforce of 90 nationalities and approximately 33% women representation. The company competes with major IT service providers such as Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies. The IT services sector is witnessing rapid digital transformation and increasing demand for AI, cloud computing, and automation.Wipro Limited is a leading technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realise their boldest ambitions and build future-ready, sustainable businesses. With over 230,000 employees and business partners across 65 countries, THEY deliver on the promise of helping our clients, colleagues, and communities thrive in an ever-changing world. 

Over the years, Wipro expanded through many acquisitions. It bought Appirio in 2016, Capco in 2021, and Rizing in 2022. These helped Wipro grow in cloud services, consulting, and enterprise software. Wipro serves industries like finance, healthcare, manufacturing, retail, and telecom. It offers software development, business process management, consulting, engineering, and cloud services. The company focuses on innovation and digital transformation. Wipro is expanding globally while staying connected to its Indian roots.  

Latest Stock News: 

The Nifty IT index shows the performance of Indian IT stocks. It stayed steady after a big fall. Last week, it fell by 7.96%. This was the biggest drop since March 2020. In this session, it rose by 1.64%. This year, the index has fallen by 13.5%. The drop is because of delays in the industry. Wipro is trading 2.65% higher at Rs 285.00 as compared to its last closing price. Wipro has been trading in the price range of 286.30 & 278.30. Wipro has given -8.02% this year & –11.38 % in the last 5 days. Wipro hasa  TTM P/E ratio of 25.44 as compared to the sector P/E of 32.67. 

Wipro is investing $200 million in Wipro Ventures to support early- to mid-stage startups. This brings its total investment to $500 million. Wipro Ventures has made 37 investments in 10 years, focusing on IT, cybersecurity, and AI. It invests $1 million to $10 million per startup and helps businesses grow. Some startups, like Tricentis and Avaamo, have benefited Wipro and its clients. Wipro Ventures is also exploring Generative AI but separately from Wipro’s $1 billion AI plan. 

Potentials: 

Wipro is investing $200 million in its venture arm, Wipro Ventures. This money will help support early- to mid-stage startups. Since 2015, Wipro Ventures has raised money four times. With this new investment, its total funding reaches $500 million. The funds will go to startups that match Wipro’s business goals. Some money will also support startups Wipro has already invested in. Wipro Ventures invests in IT startups and helps them grow. It has made 37 investments in 10 years, with 12 successful exits. It has invested in companies in India, the US, and Israel, mainly in enterprise technology and cybersecurity. Each year, Wipro Ventures makes 3 to 5 investments, usually between $1 million and $10 million per startup. Some of these startups have helped Wipro improve its own operations. For example, Avaamo, a conversational AI company, improved Wipro’s employee experience. Wipro Ventures is also investing in AI (artificial intelligence), especially generative AI (GenAI). It focuses on middleware and small language models (SLMs). However, this AI investment is separate from Wipro’s larger $1 billion AI plan. Some startups Wipro has backed have done very well. One was acquired by Palo Alto Networks in 2019 and became part of its security platform. Another, Tricentis, has grown into a big company in test automation. Wipro has worked with Tricentis for many years and introduced its solutions to many clients. Wipro Ventures continues to support new startups and create partnerships in the IT industry. 

Analyst Insights: 

  • Market capitalisation: ₹ 2,97,968 Cr. 
  • Current Price: ₹ 285 
  • 52-Week High/Low:₹ 325 / 208 
  • P/E Ratio: 24.0 
  • Dividend Yield: 2.09 % 
  • Return on Capital Employed (ROCE): 16.9 % 
  • Return on Equity (ROE): 14.3 % 

Wipro is a strong company with good profits. It has a high return on capital (16.9%) and return on equity (14.3%), meaning it uses money well. The company has low debt and strong cash flow, making it financially stable. Its profits and revenue have been growing for the last two quarters. Big investors like foreign funds and mutual funds are buying more shares, which is a good sign. 

However, Wipro’s sales growth has been slow (8.75% in 5 years). The stock is expensive, with a high P/E ratio (24), and trades above its book value. Promoters are selling some of their shares, which may be a concern. The company also pays a low dividend (12.2%), so it is not great for income-seeking investors. 

For short-term investors, holding the stock is a good idea. Long-term investors can buy when the price is lower. Risk-averse investors may wait for a better time to invest, as the stock is costly right now. 

Hexaware Technologies
Hexaware Technologies IPO: Shares Listed at 5% on High

IPO Overview 

Hexaware Technologies, a leading information technology services provider, launched its ₹8,750 crore IPO from February 12 to 14, with a price band of ₹674–708 per share. The offering was entirely an Offer for Sale (OFS) by its promoter, CA Magnum Holdings, affiliated with The Carlyle Group. The IPO was oversubscribed 2.66 times. The shareholders pattern is as follows: the Qualified Institutional Buyers (QIBs) subscribed 9.09x, while Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) subscribed at 20% and 11%, respectively. The company raised ₹2,598 crore from institutional investors, with a valuation exceeding ₹43,000 crore at the upper price band. The book-building procedure of the IPO was managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities & Capital Markets Pvt Ltd, and IIFL Securities Ltd. 

Market Position & Industry Analysis 

The Information Technology (IT) &  Business Process Management (BPM) sector plays a crucial role in India’s economy, contributing 7% to the GDP as of FY24. India has one of the largest internet consumer and, at the same time, has the lowest internet costs globally. With this, India is next for the next phase of IT growth. The Digital India Programme has strengthened digital infrastructure and access, driving rapid digital adoption through government initiatives, private sector innovation, and emerging digital applications. These advancements are creating economic value and enhancing citizen empowerment. India’s global standing in innovation has also improved, ranking 40th in the 2022 Global Innovation Index. Hexaware Technologies provides IT services in business process services, digital IT operations, cloud, data & AI, application services, and cybersecurity. The company operates across 50 offices in 19 countries, with a diverse workforce of 90 nationalities and approximately 33% women representation. The company competes with major IT service providers such as Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies. The IT services sector is witnessing rapid digital transformation and increasing demand for AI, cloud computing, and automation. Hexaware’s strategic focus on cloud and AI-driven solutions positions it well for future growth. 

Financials & Valuation 

Hexaware’s market capitalization stood at ₹44,422.48 crore post-listing and later rose to ₹46,285.06 crore as the stock gained 2.17% to ₹761.65 per share. The stock opened at ₹745.50 on the NSE, reflecting a 5.3% premium over the issue price, while on the BSE, it listed at ₹731, a 3.25% premium. By the end of the first trading day, shares settled at ₹755.75 on NSE (6.74% above the IPO price) and ₹763.85 on BSE (7.89% above the IPO price). During intraday trading, the stock peaked at ₹788, reflecting an 11.3% gain. Hexaware’s valuation, compared to industry peers, indicates strong growth potential and a focus on scalable digital transformation services.  

Investor Sentiment & Analyst Insights 

Despite a subdued initial listing, Hexaware Technologies’ stock gained traction due to strong investor interest. The oversubscription of the IPO, particularly by institutional investors, indicates confidence in the company’s future growth. The IT services sector’s expansion, coupled with Hexaware’s cloud and AI-driven strategy, presents growth opportunities. However, potential risks include global economic slowdowns, intense competition from larger IT players, and evolving regulatory challenges. The grey market premium (GMP) trends suggested moderate demand pre-listing, which translated into a stable yet promising listing performance. Overall, the IPO’s strong institutional backing and Hexaware’s strategic focus make it an attractive investment opportunity for long-term investors.  

Investors who did not receive the subscription should wait for the company’s quarterly results to assess its performance and decide whether to own the shares.