Leading supplier of corporate and IT solutions, Hexaware Technologies, has made a big move in the direction of going back on the public market. On September 6, 2024, the business, supported by the Carlyle Group, submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This action prepares the ground for the much awaited initial public offering (IPO), which is expected to generate an incredible Rs 9,950 crore.
This is going to be a record-breaking proposed public offering. If it is successful, it will break the record set by Tata Consultancy Services (TCS) back in 2002, when it raised Rs 4,713 crore, and become the largest-ever initial public offering (IPO) in the Indian IT services and enterprise technology sectors.
A Return to the Stock Market After Delisting:
Hexaware’s first share offering in 1992 represented the start of the company’s path to this IPO. However, the business was taken from the stock markets’ lists in 2002 following its acquisition by Baring Private Equity Asia. The largest private equity deal in India at the time, worth over USD 3 billion, saw The Carlyle Group, a worldwide investment group, purchase Hexaware from Baring Private Equity Asia in 2021.
Hexaware appears to be intended by Carlyle as having a public listing. The company’s intention to take advantage of India’s sizable pool of public investors and its faith in its growth prospects are both demonstrated by the impending IPO.
What is Hexaware Offering?
Hexaware boasts a diverse portfolio of IT services, catering to various business needs. The company offers solutions across a wide range of areas, including:
- Information Technology (IT) Services
- Business Process Outsourcing (BPO)
- Cloud Computing
- Data Analytics
- Artificial Intelligence (AI) Solutions
With this extensive range of offerings, Hexaware is positioned as a one-stop shop for companies looking to use technology to transform and develop.
The promoter company connected to The Carlyle Group, CA Magnum Holdings, will make an offer for sale (OFS) of equity shares as part of the planned IPO. This action suggests that Carlyle intends to use the IPO to partially unload its ownership interest in Hexaware. A share reservation for subscription by qualified corporate personnel is also mentioned in the DRHP.
Conclusion:
The adoption of cloud computing, digital transformation, and rising automation demand are all driving the extraordinary growth of the Indian IT business. With its experience in these specific fields, Hexaware is in a good position to take advantage of this momentum. Potential investors find the company appealing due to its solid track record, wide range of service offerings, and emphasis on innovation.
Not only will Hexaware’s successful IPO mark an important turning point for the business, but it will also be encouraging news for the Indian IT industry. Further expansion of the business could be fueled by it, creating opportunities for additional bright IT companies to enter public markets.
Key Points to Remember:
- Hexaware Technologies, backed by The Carlyle Group, filed its DRHP for an IPO.
- The proposed IPO aims to raise Rs 9,950 crore, making it the biggest in the Indian IT services and enterprise tech space.
- If successful, the listing will mark Hexaware’s return to the stock market after being delisted in 2002.
- The IPO will be an offer for sale by the Carlyle-affiliated promoter entity.
- Hexaware offers a comprehensive range of IT, BPO, cloud, data analytics, and AI solutions.
Hexaware and the Indian IT sector have both benefited greatly from this IPO. Hexaware is well-positioned for a prosperous public debut, drawing investors and strengthening its place as a major player in the corporate technology market thanks to its strong fundamentals and growth prospects.
