The IPO of Mumbai-headquartered Carlyle Group-backed Hexaware Technologies is a complete offer for sale (OFS) by promoter CA Magnum Holdings, part of Carlyle Group.
Private equity major Carlyle Group-backed Hexaware Technologies has filed preliminary papers with capital markets regulator Sebi for floating a Rs 9,950 crore initial public offering (IPO). The initial share-sale of the Mumbai-headquartered company is a complete offer for sale (OFS) by promoter CA Magnum Holdings, part of Carlyle Group, according to the draft red herring prospectus (DRHP) filed on Friday.
CA Magnum Holdings has 95.03 per cent stake in the IT company.
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Since the entire issue is an OFS, all the proceeds from the IPO will go directly to the selling shareholder, rather than to the company.
Explaining the reason for going public, the company said it is aimed at achieving the benefit of listing equity shares on stock exchanges and carrying out OFS for the selling shareholder.
If successful, Hexaware’s maiden public issue would be the largest in the country’s IT services sector since Tata Consultancy Services’ Rs 4,700-crore IPO over two decades ago. Hexaware Technologies is a global digital and technology services company with artificial intelligence (AI) at its core and having a diverse range of customers, including 31 of the Fortune 500 organizations.
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It serves customers across the Americas, Europe and Asia-Pacific (including India and the Middle East).
The company manages its business through six operating segments — financial services, healthcare and insurance; manufacturing and consumer; Hi-tech and professional services; banking, and travel and transportation.
Its offerings encompass five broad services — Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services — and delivers its services through AI-enabled digital platforms such as Rapid for digital transformation, Tensai for AI-powered automation and Amaze for cloud adoption.
The company has 31,870 employees across 28 countries.
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Hexaware’s previous promoter, Baring Private Equity Asia, delisted the company in 2020. Almost a year after the delisting, Carlyle Group acquired Baring’s stake in Hexaware.
As of financial year 2023, the company’s revenue from operations was Rs 10,380 crore with a profit after tax (PAT) of Rs 997 crore, and for six months ended June 2024, revenue from operations was Rs 5,684 crore with a PAT of Rs 553 crore.
Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Securities are the book-running lead managers for the company’s IPO.
The equity shares are proposed to be listed on BSE and NSE.
