MUMBAI: Private equity major Carlyle-promoted Hexaware Technologies, is launching the country’s largest ever IPO in the IT services space next week, raising Rs 9,500 crore. Carlyle had bought Hexaware, which has been renamed as ETQ now, from Baring Private Equity Asia in 2021.
This will be biggest ever IPO in the IT services and enterprise tech segment since the Rs 4,713-crore issue of the industry leader Tata Consultancy Services way back in 2002. TCS has now become the second most valued IT services firm on Dalal Street with over Rs 14.8 trillion of market cap (as of Wednesday's share price).
Carlyle acquired Hexaware in 2021 from rival firm Baring Private Equity Asia for around $3 billion after the founder Atul Nishar decided to exit in 2013.
"The Rs 9,500-crore OFS-only issue by Carlyle, is all set for launch next week and an announcement is likely on Thursday with the public subscription being opened on February 12," said a person in the know of the development on Wednesday. Carlyle did not offer any comment.
Atul K Nishar sold the software services company for Rs 1,000 crore to Barings Asia in August 2013 after founding it in 1990 in Navi Mumbai. Barings then sold 62% of Hexaware to Carlyle for around $3 billion in early 2021 which later acquired more share to take its ownership to 95.o3%.
The company was first incorporated as Aptech Information Systems and the name changed to Hexaware Technologies in April 2002.
In May, Carlyle had picked Kotak Mahindra Capital, Citi, JP Morgan, HSBC Securities and IIFL Capital as investment bankers for the deal, while Shardul Amarchand Mangaldas was appointed as the counsel.
Then issue size according to the Securities and Exchange Board of India filing in September was pegged at Rs 9,950 crore, valuing the company at around $6 billion.
A successful listing attempt would mark the return of Hexaware to the domestic bourses after 22 years. According to the NSE data, it was first listed in June 2002 and after buying out the promoters Baring Private Equity took the company private in 2020.
The company currently operates 61 offices worldwide across 19 countries and employs more than 31,000 serving its over 370 clients.
Hexaware is focused on six operating segments --financial services, healthcare and insurance, manufacturing and consumer, hi-tech and professional services, banking, and travel and transportation.
According to its Sebi filing, for the six months to June 2024, the company had revenue of Rs 5,684 crore, with the Americas being the biggest contributor with a 73.3% of the top line pie.