Shares of Hexaware Technologies surged 10% on their stock market debut, valuing the Carlyle-backed IT exporter at $5.34bn.

The strong performance marked a positive start for India’s first billion-dollar IPO of the year, despite challenges in securing full subscription without significant institutional backing.

Hexaware’s stock opened at Rs 745.50 on the National Stock Exchange, above its Rs 708 offer price, before closing at Rs 762.55. While the broader Nifty 50 index ended slightly lower, the IT firm’s listing exceeded analysts’ expectations of a flat debut, given the muted premium in the grey market.

Amit Jain, managing director and head of India at Carlyle, described the IPO as a testament to both the company’s strength and the resilience of India’s capital markets. Institutional investors bid for nine times the shares available, while retail investors showed lower enthusiasm, bidding for only a tenth of their allotted portion amid market volatility and concerns about the IT services sector.

Hexaware, which had been publicly listed before being taken private by Baring Private Equity Asia, returned to the market after more than four years. Carlyle, which acquired the company in 2021, sold about 21% of its stake through the IPO but retains a controlling interest. Jain highlighted Hexaware’s AI-driven growth potential as a key driver for its long-term strategy.

JM Financial initiated coverage of the stock with a “buy” rating and set a target price of Rs 820, citing Hexaware’s focus on expanding its client base with a broader range of services.