Hexaware Technologies has filed preliminary documents with the Securities and Exchange Board of India (SEBI) for a ₹9,950 crore initial public offering (IPO). This move marks a significant step for the IT services company, backed by Carlyle Group.
The IPO will be a complete offer for sale (OFS) by the promoter, CA Magnum Holdings, which holds a 95.03% stake in Hexaware. All proceeds from the IPO will go to the selling shareholder, not to the company itself.
Hexaware aims to gain the benefits of being listed on the stock exchanges and facilitate the OFS for its promoter. If successful, this will be the largest public issue in the Indian IT services sector since Tata Consultancy Services’ ₹4,700 crore IPO more than 20 years ago.
The company, based in Mumbai, is a global player in digital and technology services with a focus on artificial intelligence (AI). It serves a diverse range of clients, including 31 Fortune 500 companies, across the Americas, Europe, Asia-Pacific, India, and the Middle East.
Hexaware operates in six segments: financial services and insurance; manufacturing and consumer; hi-tech and professional services; banking; travel; and transportation. Its services cover five main areas—Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services—leveraging AI-enabled platforms like Rapid, Tensai, and Amaze.
As of the financial year 2023, Hexaware reported revenues of ₹10,380 crore and a profit after tax of ₹997 crore. For the six months ending June 2024, the revenue was ₹5,684 crore with a profit after tax of ₹553 crore.
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 the IPO. The company plans to list its shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
