TNFHexaware Technologies Set to Launch India’s Biggest IT Services IPO
Mumbai/ TNF
Hexaware Technologies, an IT services company promoted by the American private equity giant Carlyle, is preparing to launch its Initial Public Offering (IPO) next week, as reported by multiple industry sources. This IPO is poised to become the largest public offering in India’s IT services and enterprise tech sector to date.
Sources familiar with the matter have indicated that the IPO will be a complete Offer for Sale (OFS) by Carlyle. The issue is expected to open for subscription between February 12 and February 14, with anchor investors being given access on February 11.
If successful, this IPO will surpass the ₹4,713 crore public issue launched by Tata Consultancy Services (TCS) in 2002, becoming the largest-ever IPO in India’s IT services sector in terms of valuation. Prior to this, Carlyle-backed Hexaware had selected prominent investment banks such as Kotak Mahindra Capital, Citigroup, JP Morgan, HSBC Securities, and IIFL Capital to act as advisors for the deal in May 2024.
According to the draft red herring prospectus (DRHP) filed on September 6, 2024, the IPO was initially estimated to raise ₹9,950 crore. Sources also mentioned that the target valuation for the company was between $5 billion and $6 billion, subject to market conditions.
Carlyle, which acquired Hexaware from Baring Private Equity Asia (now EQT) in 2021 for approximately $3 billion, is expected to sell its shares via this offering. If the IPO is successful, it will mark Hexaware Technologies’ return to Indian stock markets after 22 years. The company had initially been listed on the National Stock Exchange (NSE) on June 14, 2002. However, the firm was delisted in 2020 by its then-promoter, Baring Private Equity Asia.
Currently, Carlyle holds a 95.03% stake in Hexaware Technologies. The company is headquartered in Mumbai and operates in over 19 countries across the globe, employing over 31,000 people. It has more than 370 clients worldwide. As per its DRHP, Hexaware reported a revenue of ₹5,684 crore for the six months ending June 2024, with the United States contributing the largest share at 73.3% of the total revenue.
With its robust global footprint, a diversified client base, and strong growth trajectory, Hexaware’s IPO is expected to capture significant market interest, paving the way for one of India’s largest-ever tech sector public offerings.
