Hexaware Technologies investors to sell shares worth ₹9,950 crore in IPO

Mumbai-based Hexaware Technologies has filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) in which promoters will sell shares worth ₹9,950 crore.

If successful, Hexaware's IPO would be the largest in the country's information technology services space since Tata Consultancy Services' ₹4,713-crore initial share sale more than two decades ago.

Promoted by US private equity firm Carlyle, Hexaware Technologies has hired Kotak Investment Banking, Citi Global Markets, J.P. Morgan, HSBC Securities and Capital Markets, IIFL Securities to manage the share sale.

In 2021, Carlyle acquired Hexaware from Baring Private Equity Asia (now EQT) for approximately $3 billion, making its the largest ever private-equity deal in India. If Hexaware's listing plans succeed, it will be making a return to the domestic stock exchanges after 4 years. NSE data shows that it was initially listed on 14 June 2002. Before Carlyle acquired Hexaware, its previous promoter Baring Private Equity Asia had delisted its shares and taken the company private in 2020.

Also Read: Carlyle weighs $1 billion IPO for Indian IT firm Hexaware Technologies

The company reported a revenue of $1.26 billion for the year ended December 2023, up 7.8% from the preceding year. It earns as much as 72% of its revenue from America whereas a similar percentage of its 31,000-strong workforce is based in the Asia Pacific region.

The company counts IT midcaps including Persistent Systems Ltd, LTIMindtree Ltd, Coforge Ltd, and Mphasis Ltd as its peers, according to its draft red herring prospectus.

Carlyle owns a 95.03% stake in Hexaware Technologies. The company offers a variety of services, such as IT, business process outsourcing, cloud computing, data analytics, and artificial intelligence solutions.

The equity shares are planned to be listed on both BSE and the National Stock Exchange. 

Also Read: ‘Hexaware actively seeking mid-sized and large-sized deals’

The company first issued shares in November 1992. It privately sold a total of 80 shares at a face value of ₹10 per share to seven shareholders.

Hexaware has two ongoing criminal proceedings against it, as per its DRHP. While one of the cases involves alleged contravention of environmental norms, the other pertains to unfair labour practices alleged against the company.