Virtusa Corp., the information technology services provider owned by EQT AB, is sounding out domestic investment banks for an initial public offering (IPO) in India that could value the company at $7 billion (approximately ₹67,000 crore), or more, according to two people with direct knowledge of the matter.
The Massachusetts-based company has already hired global bulge-bracket banks Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. for the proposed billion-dollar IPO, according to a Reuters report dated 28 April. It is now looking to add local investment banks to the syndicate as preparations accelerate for a share sale targeted for 2027, the people said, asking not to be identified because the discussions are private.
“The company wants local banking relationships to navigate domestic markets,” one of the people said. "Domestic institutions bring specific placement talent for an offering of this scale."
“Preparations are moving forward according to schedule,” the second person said. “There are discussions going on around where the holding structure will be registered for the IPO. Banker appointments will conclude once these discussions finalize.”
Virtusa was acquired by Baring Private Equity Asia (BPEA) for approximately $2 billion in 2021, taking the company off the Nasdaq. EQT Group gained control of Virtusa when it merged with BPEA in 2022, and currently lists India as the country of operation for the portfolio IT services company.
Emails sent to EQT and Virtusa remained unanswered until press time.
Founded in 1996, Virtusa has IT delivery centres in Hyderabad, Chennai, Bengaluru, Mumbai and Gurugram, according to its website. The company operates across multiple geographies, providing digital engineering and IT outsourcing services.
Virtusa had approximately 47,000 employees worldwide as of March 2026, according to workforce intelligence data from Revelio Labs. About 86.2% of its workforce was concentrated in South Asia, primarily India.
India focus
A listing in India would come as multinational technology companies seek to tap the country’s capital markets, where domestic valuations and the concentration of their workforce can support an India-market presence.
Like larger peer Cognizant Technology Solutions Corp., Virtusa is also exploring an India listing to capture higher local valuation multiples and deepen engagement with domestic capital markets.
The proposed listing also comes as Virtusa faces pressure on its credit profile amid rising competition. Credit-rating agency S&P Global on 20 August revised its outlook on Virtusa to negative from stable, citing “margin pressures stemming from pricing pressures and a financial policy conducive to debt-funded acquisitions.”
“The negative outlook reflects the risk of a downgrade over the next 12 months if leverage remains near 6x or higher while cash flow deteriorates,” the report added. “A weakening view of the business--such that we expect profitability to remain below historical levels or rising competitive pressures stemming from AI-led work--could also lead to a downgrade.”
A Virtusa IPO would add to India’s growing pipeline of new share sales, with Jio Platforms Ltd, PhonePe Ltd, Oravel Stays Ltd and Avaada Electro Ltd expected to hit the market in the coming months.
India’s mainboard IPO pipeline had reached around ₹3.86 trillion as of September 2026, about 3.5 times the ₹1.10 trillion raised through 84 mainboard IPOs so far this year, according to a report by the Association of Investment Bankers of India (AIBI).