By Kimberley Kao

Shares of IT company Hexaware Technologies jumped in their Mumbai debut, signaling strong investor interest following India's first billion-dollar initial public offering of the year.

The stock rose as much as 10% to 780 rupees on the BSE exchange, outperforming the benchmark Sensex's 0.3% gain.

Hexaware's IPO raised 87.50 billion rupees, equivalent to $1.01 billion, with shares priced at 708 rupees each, the top end of its marketed range. It was oversubscribed by 2.66 times, according to the National Stock Exchange of India.

Qualified institutional buyers subscribed for 9.09 times the shares earmarked for them, NSE data showed. That compared with lackluster demand from individual retail investors, who bid for only 0.11 times the available shares.

Hexaware provides digital and IT services, similar to Tata Consultancy Services and Infosys.

The Indian IT company first listed in 1997 but was delisted in 2020. In 2021, Carlyle Group's affiliate CA Magnum Holdings acquired a 95.51% shareholding in Hexaware, according to the company's filings.

It generated about $1.01 billion in revenue from operations for the nine months through September and had more than 30,000 employees as of Sept. 30. More than 70% of its revenue comes from the Americas and over 20% comes from Europe, according to the company.

India's IPO market has been running hot over the past year. The National Stock Exchange said it hosted 268 IPOs in 2024, an annual record for the exchange. The IPOs raised about $19.5 billion, topping those raised via Nasdaq, the New York Stock Exchange and the Hong Kong Stock Exchange, the NSE said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

February 19, 2025 02:51 ET (07:51 GMT)

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