Hexaware Technologies, backed by private equity firm Carlyle Group, has filed preliminary documents with the Securities and Exchange Board of India (SEBI) for a Rs 9,950 crore initial public offering (IPO).
The Mumbai-based IT company’s IPO will be a complete offer for sale (OFS) by its promoter, CA Magnum Holdings, a Carlyle Group entity that owns a 95.03% stake in the company. Since this is an OFS, the proceeds from the IPO will go directly to the selling shareholder rather than to the company itself.
Hexaware Technologies aims to benefit from listing its shares on stock exchanges and conducting the OFS for its shareholders. If successful, this IPO would be the largest in the Indian IT services sector since Tata Consultancy Services’ Rs 4,700 crore IPO more than 20 years ago.
Hexaware Technologies is a global digital and technology services provider with a focus on artificial intelligence (AI). It serves a diverse range of customers, including 31 Fortune 500 companies, across the Americas, Europe, Asia-Pacific, India, and the Middle East.
The company operates through six segments: financial services, healthcare and insurance; manufacturing and consumer; hi-tech and professional services; banking; and travel and transportation. Its services include Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, delivered through AI-enabled platforms like Rapid, Tensai, and Amaze.
Hexaware, which had 31,870 employees across 28 countries as of the latest count, was delisted by previous promoter Baring Private Equity Asia in 2020. Carlyle Group acquired Baring’s stake in the company shortly thereafter.
For the FY23, Hexaware reported revenue of Rs 10,380 crore and a profit after tax (PAT) of Rs 997 crore. For the six months ending June 2024, its revenue was Rs 5,684 crore with a PAT of Rs 553 crore.
The IPO will be managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Securities.
The equity shares are planned to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).