Carlyle-Backed Hexaware Tech to Launch Rs 9,950 Cr IPO: AI-Driven IT Giant Files with SEBI

Hexaware Technologies, supported by private equity giant Carlyle Group, has filed papers with SEBI (Securities and Exchange Board of India) to launch a Rs 9,950 crore initial public offering (IPO). This IPO will be a complete offer for sale (OFS) by the promoter CA Magnum Holdings, a Carlyle Group entity, as per the draft red herring prospectus (DRHP) filed on Friday.

Currently, CA Magnum Holdings holds a 95.03% stake in Hexaware, a leading IT company. Since the IPO is fully an OFS, all proceeds from the sale will go to the promoter, not the company.

Reason for IPO

Hexaware’s main goal with the IPO is to get its shares listed on stock exchanges and allow the selling shareholder, Carlyle, to offload its stake.

If successful, Hexaware’s IPO will be the largest in India’s IT services sector since Tata Consultancy Services (TCS) launched its Rs 4,700 crore IPO over 20 years ago.

About Hexaware Technologies

Hexaware Technologies is a global IT and digital services provider with artificial intelligence (AI) at the heart of its operations. It serves a wide range of clients, including 31 Fortune 500 companies, across regions like the Americas, Europe, and the Asia-Pacific.

The company focuses on six business sectors: financial services; healthcare and insurance; manufacturing and consumer; Hi-tech and professional services; banking; and travel and transportation. Its services include five key offerings: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services. These services are delivered through digital platforms like Rapid (for digital transformation), Tensai (for AI-powered automation), and Amaze (for cloud adoption).

Hexaware has a workforce of 31,870 employees spread across 28 countries.

Financial Performance

In 2023, Hexaware reported revenues of Rs 10,380 crore, with a profit after tax (PAT) of Rs 997 crore. For the six months ending June 2024, the company generated Rs 5,684 crore in revenue with a PAT of Rs 553 crore.

Previous Ownership

Hexaware was previously owned by Baring Private Equity Asia, which delisted the company in 2020. About a year after the delisting, Carlyle Group took over Baring’s stake in Hexaware.

IPO Management

Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Securities are the lead managers for Hexaware’s IPO. The company’s shares are set to be listed on both the BSE and NSE.