CARLYLE-PROMOTED HEXAWARE FILES FOR RS 9,950 CR IPO, INDIA'S BIGGEST IN IT SERVICES AND ENTERPRISE TECH SPACE

US private equity giant Carlyle-promoted Hexaware Technologies has filed draft papers with Sebi to unlock value via a big-bang IPO, India's biggest ever in the IT services and enterprise tech segment.

The size of the issue, a pure OFS, or offer for sale, by the parent Carlyle is Rs 9,950 crore, according to a copy of the DRHP reviewed by Moneycontrol.

Carlyle couldn’t be reached for an immediate comment.

On May 14, Moneycontrol was the first to report that Carlyle-backed Hexaware had picked five investment banks, namely Kotak Mahindra Capital, Citi, JP Morgan, HSBC Securities and IIFL Capital as advisors for the deal.

The report had added that the targeted valuation was between $5 billion to $6 billion, which could vary later depending on market conditions.

If the listing plans fructify, it would be India's biggest IT services IPO in rupee terms since the Rs 4,713-crore issue of TCS back in 2002.

Carlyle acquired Hexaware in 2021 from Baring Private Equity Asia (now EQT) for around $3 billion, India's biggest ever private-equity deal cheque.

A successful listing attempt would mark the return of Hexaware Technologies to the domestic bourses after 22 years. According to NSE data, it first listed on June 14, 2002.

The earlier promoter Baring Private Equity Asia had delisted the firm in 2020.

A closer look at Hexaware

Hexaware Technologies is a global technology and business process services company based out of Mumbai with a presence in 61 offices worldwide in 19 plus countries and a workforce of 31,000 and a client base of more than 370. According to its website, the firm has clocked $1.3 billion in annual revenues.

Carlyle holds 95.03 percent stake in Hexaware Technologies.

As per the latter's DRHP, "We are a global digital and technology services company with artificial intelligence (“AI”) at its core. We manage our business through six operating segments based on the industries we serve: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation. Our offerings encompass five broad services: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, which form the foundation for our offerings."

Earlier in May, in a bid to bolster its data and analytics capabilities, the firm announced the acquisition of Softcrylic, a data consulting firm headquartered in Minneapolis.

Alluding to the impact of artificial intelligence (AI), R Srikrishna, CEO, Hexaware Technologies said in the firm's 2023 annual report, "Gen AI, coupled with old-fashioned AI, will open myriad opportunities for every business to become more efficient and create disruptive new business models. However, some fundamentals don’t change. Every business in every industry wants to transform into a platform-based business. While gen AI will help accelerate that journey, it will not replace human talent, problem-solving, and creative capabilities."

"We are rapidly pivoting Hexaware to an AI-first world. We’ve trained over 15,000 tech employees (approximately 80% of our tech talent) and created transformative solutions that redefine every facet of our operations," he added.

2024-09-06T15:25:05Z dg43tfdfdgfd