Hexaware's ₹9,950 crore IPO: Papers filed with SEBI, expected to be the biggest IPO in the IT sector ever

IT company Hexaware Technologies has prepared to bring an initial public offering (IPO) of Rs 9,950 crore. For this, the company has submitted a draft red herring prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (SEBI).

This IPO of Hexaware will be the largest IPO ever in India's IT services and enterprise technology segment. Earlier, the largest IPO in the Indian IT sector was that of Tata Consultancy Services (TCS) in 2002, which was worth Rs 4,713 crore. Hexaware is owned by American private equity firm Carlyle.

IPO will have only OFS: According to the DRHP, Hexaware's IPO will have only an Offer for Sale (OFS), in which Carlyle plans to sell its stake. There was a report in May this year, which said that Hexaware has appointed 5 investment banks - Kotak Mahindra Capital, Citi, JP Morgan, HSBC Securities and IIFL Capital as advisors for its IPO.

Valuation between $5-6 billion: According to the report, the company aims to achieve a valuation between $5-6 billion. Carlyle bought Hexaware from Baring Private Equity Asia (now EQT) in 2021 for about $3 billion.

Return to the stock market after 22 years: The company is making a comeback in the domestic stock markets after nearly 22 years. According to NSE data, Hexaware was first listed on the stock market on June 14, 2002, which was delisted by Baring Private Equity Asia in 2020.

Hexaware: A Global Technology Company: Hexaware Technologies is a global technology and business process services company operating from 61 offices spread across over 19 countries. The company has 31,000 employees and over 370 clients.

Carlyle holds 95.03% stake: According to the company's website, Hexaware has annual revenue of $1.3 billion and Carlyle holds a 95.03% stake in Hexaware. The company's main focus is on Artificial Intelligence (AI).

Hexaware's 6 Operating Segments: Hexaware manages its business through 6 operating segments, which are based on the industries it serves. These industries are: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, Travel and Transportation.

5 Key Services Offered: The company also offers 5 core services, which include Design & Build, Secure & Run, Data & AI, Optimize and Cloud Services. All these are the mainstay of the company's offering.

 

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