Hexaware Technologies, backed by the Carlyle Group, has officially filed with SEBI for a ₹9,950 crore initial public offering (IPO). This move marks a significant moment for the Mumbai-based IT company, which is seeking to make a substantial impact in the capital markets.
The proposed IPO will be a complete offer for sale (OFS) by CA Magnum Holdings, the promoter entity which holds a 95.03% stake in Hexaware. This means that all funds raised from the IPO will go directly to CA Magnum Holdings rather than to Hexaware itself.
The primary motivation behind the IPO is to facilitate the listing of equity shares on stock exchanges and to enable the selling shareholder to liquidate its stake. If successful, this will be the largest IPO in the Indian IT services sector since Tata Consultancy Services’ ₹4,700 crore offering over 20 years ago.
Hexaware Technologies specializes in digital and technology services with a strong focus on artificial intelligence (AI). The company caters to a broad range of clients, including 31 Fortune 500 companies, and operates across the Americas, Europe, Asia-Pacific, and the Middle East.
The company is organized into six key segments: financial services and insurance; manufacturing and consumer; hi-tech and professional services; banking; and travel and transportation. Hexaware offers a suite of services including Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services.
Hexaware leverages AI-enabled platforms such as Rapid for digital transformation, Tensai for AI-powered automation, and Amaze for cloud adoption. The company’s global workforce comprises 31,870 employees across 28 countries.
In 2020, Hexaware was delisted by its previous promoter, Baring Private Equity Asia. The Carlyle Group acquired Baring’s stake in the company nearly a year after the delisting.
For the financial year 2023, Hexaware reported a revenue of ₹10,380 crore and a profit after tax (PAT) of ₹997 crore. For the six months ending June 2024, it reported a revenue of ₹5,684 crore and a PAT of ₹553 crore.
The IPO is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Securities. The shares are expected to be listed on both the BSE and NSE, adding to the excitement surrounding the company’s public debut.