Hexaware Technologies IPO

Hexaware Technologies’ Upcoming IPO: A Potential Game-Changer in the IT Sector

Hexaware Technologies, a prominent player in the global IT services sector, is poised to make headlines with its upcoming Initial Public Offering (IPO). If successful, this IPO could set a new record in the Indian IT sector, surpassing the previous high held by Tata Consultancy Services (TCS). Here’s a closer look at the details of Hexaware Technologies’ IPO, its potential impact, and the company’s background.

Hexaware Technologies’ IPO: Breaking Records?

Hexaware Technologies has submitted a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an impressive ₹9,950 crore IPO. This move, if approved, would make it the largest IPO in the IT sector, eclipsing the current record held by Tata Consultancy Services (TCS).

Record-Breaking Potential

TCS, a major IT company under the Tata Group, currently holds the record for the largest IT sector IPO in India. When TCS went public two decades ago, it raised ₹4,713 crore, setting a benchmark in the domestic market. Hexaware Technologies’ planned IPO is set to be nearly double this amount, highlighting the significant scale of the proposed offering.

Key Details of the IPO

The DRHP reveals that the Hexaware Technologies IPO will be an offer for sale (OFS) only, meaning existing shareholders will sell their shares rather than issuing new ones. The company has appointed a group of five prestigious investment banks to manage the IPO:

Kotak Investment Banking
Citi Global Markets
JP Morgan
HSBC Securities
IIFL Securities

These institutions will play a crucial role in underwriting and facilitating the IPO process, ensuring a smooth transition to public trading.

Hexaware Technologies is promoted by the Carlyle Group, an American private equity firm that holds approximately 95% of the company’s shares. This major stakeholder’s involvement underscores the significance of the IPO and its potential impact on the market.

Company Background and Business Model

Hexaware Technologies, a global technology company, operates with a substantial international presence. The company boasts around 61 offices across the globe and employs approximately 31,000 people. It serves a diverse client base of 370 companies and has achieved an annual revenue of $1.3 billion.

Hexaware Technologies’ core focus is on artificial intelligence (AI), positioning itself at the forefront of technological innovation in the IT sector. The company’s expertise in AI and other advanced technologies has been a key driver of its success and market positioning.

Historical Context:

Hexaware Technologies was previously listed on the stock exchanges but was delisted in 2020. The decision to take the company private was made by its former promoter, Bearing Private Equity Asia. The move to relist through this IPO marks a significant shift and offers a new opportunity for investors to participate in the company’s growth.

Conclusion:

The upcoming IPO of Hexaware Technologies is poised to be a landmark event in the Indian IT sector. With its planned offering of ₹9,950 crore, it has the potential to set a new record, surpassing the previous benchmark set by TCS. The involvement of prominent investment banks and the support of Carlyle Group further enhance the significance of this IPO.

As Hexaware Technologies prepares to go public, investors and market watchers will be keenly observing the development, looking to understand the implications of this major move in the IT sector.