Hexaware Technologies Gears Up for $1 Billion IPO in India

Hexaware Technologies, an Indian IT services provider, is preparing for a significant initial public offering (IPO) that could raise up to $1 billion, with the backing of US private equity giant Carlyle, to capitalize on the growing demand for digital transformation solutions in the Indian IT services sector. The IPO, expected to take place in the coming months, could value the company between $5 billion and $6 billion and have a ripple effect on the industry, boosting investor confidence and paving the way for other companies to go public." This description focuses on the primary topic of the IPO, the main entities involved (Hexaware Technologies and Carlyle), the context of the Indian IT services sector, and the significant actions and implications of the event. It also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as the industry and market context, the key players, and the potential impact of the IPO.

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Bijay Laxmi
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Hexaware Technologies Gears Up for $1 Billion IPO in India

Hexaware Technologies Gears Up for $1 Billion IPO in India

Hexaware Technologies, a prominent Indian IT services provider, is preparing for a significant initial public offering (IPO) that could raise up to $1 billion. The company has appointed a syndicate of five investment banks, including JP Morgan, Citi, ICICI Securities, HSBC, and Kotak Mahindra Capital, to manage the IPO process. If successful, this would mark the largest IPO in the Indian IT services sector since Tata Consultancy Services (TCS) went public.

Why this matters: The successful listing of Hexaware Technologies could have a ripple effect on the Indian IT services industry, boosting investor confidence and paving the way for other companies to go public. This IPO also highlights the growing demand for digital transformation solutions, which could have significant implications for businesses and economies worldwide.

The IPO is expected to take place in the coming months, although the exact timeline and valuation details are subject to change based on market conditions. Hexaware Technologies, promoted by US private equity giant Carlyle, is currently valued at approximately $4 billion. The company specializes in IT and business process outsourcing services, with a strong focus on cloud, data, and artificial intelligence services.

Carlyle acquired a 62% stake in Hexaware from Baring Private Equity Asia for nearly $3 billion in October 2021. The potential IPO is part of Carlyle's broader strategy to optimize its investment in the company. Hexaware Technologies was previously listed on the Bombay Stock Exchange (BSE) and National Stock Exchange in 2002 but delisted in November 2020 at a price of ₹475 per share.

In a recent development, Hexaware announced the acquisition of Softcrylic, a data consulting firm headquartered in Minneapolis. This move is aimed at bolstering Hexaware's data and analytics capabilities and offering clients a comprehensive suite of services. The acquisition aligns with the company's strategy to enhance its offerings in key growth areas.

The upcoming IPO of Hexaware Technologies is expected to value the company between $5 billion and $6 billion, although this range may be adjusted based on market sentiment. With the backing of Carlyle and a strong portfolio of services, Hexaware is well-positioned to capitalize on the growing demand for digital transformation solutions. The successful listing of Hexaware Technologies would not only provide a partial exit for Carlyle but also mark a significant milestone for the Indian IT services industry.

Key Takeaways

  • Hexaware Technologies prepares for $1 billion IPO, largest in Indian IT services sector since TCS.
  • IPO to be managed by 5 investment banks: JP Morgan, Citi, ICICI Securities, HSBC, and Kotak Mahindra Capital.
  • Hexaware valued at $4 billion, specializes in IT and business process outsourcing services.
  • Carlyle acquired 62% stake in Hexaware for $3 billion in 2021, IPO part of optimization strategy.
  • IPO to value Hexaware between $5-6 billion, marking significant milestone for Indian IT services industry.