Anindita Chatterjee
Updated on: October 7, 2024 8:01 pm GMT
Hexaware Technologies Moves Forward with ₹9,950 Crore IPO
Hexaware Technologies, a key player in the IT services and enterprise technology sector, has recently filed its preliminary draft papers with the Securities and Exchange Board of India (SEBI) to raise substantial funds through an initial public offering (IPO). The company aims to collect ₹9,950 crore via an offer-for-sale (OFS) structure, without creating any fresh equity. This represents one of the largest IPOs in the technology sector in India to date.
IPO Details and Regulatory Filing
The draft red herring prospectus (DRHP) submitted by Hexaware Technologies provides limited but critical details about the upcoming offering. While specifics regarding the issue size and key dates have not yet been disclosed, the commitment to raise funds signals strong confidence in the market. The initial public offering will be managed by a consortium of prominent financial institutions, including Kotak Investment Banking, Citi Global Markets, J.P. Morgan, and HSBC Securities and Capital Markets, among others. KFin Technologies has been appointed as the registrar for the IPO.
Background of Hexaware Technologies
Hexaware Technologies, established in 1990 and headquartered in Mumbai, operates in the global technology and business process services landscape. With 61 offices in over 19 countries, the company has witnessed significant growth over the years and currently employs around 31,000 staff members while servicing a diverse clientele of more than 370 companies. According to its own reports, Hexaware Technologies generates annual revenues of approximately $1.3 billion.
In 2021, the company was acquired by Carlyle Group from Baring Private Equity Asia for an estimated $3 billion, marking this transaction as the largest private-equity deal in India’s history at that time. Carlyle now holds a 95.03 percent stake in Hexaware Technologies, positioning the company for continued expansion and success in a competitive market.
Historical Context and Market Potential
If successful, this IPO could signify Hexaware’s return to the Indian stock exchanges after a 22-year hiatus. The company was initially listed on June 14, 2002, but delisted a few years later. The revival of Hexaware on the public market is seen as a promising opportunity, both for the company and for investors looking for stakes in the increasingly vital IT services sector. As the digital landscape continues to expand, the demand for technology integration and business process outsourcing is expected to rise, creating ample market potential for Hexaware Technologies post-IPO.
Strategic Importance of the IPO
This IPO differs from traditional offerings as it does not involve a fresh issue of equity, which can typically dilute existing shares. Instead, it primarily serves as a vehicle for existing investors to liquidate their holdings. The significance of this maneuver lies in its potential to provide Carlyle with liquidity while still positioning Hexaware for growth in its operational capabilities.
Expectations and Future Directions
Investors and market analysts are keenly awaiting further announcements regarding key dates and pricing, which will determine the ultimate success of this IPO. The technological sector in India is highly competitive, and investors will be closely watching Hexaware’s strategies as it seeks to harness its market position to deliver value to shareholders.
Hexaware Technologies is getting ready for its upcoming IPO, and many people think it will make a big impact in the Indian IT world. This IPO shows how well the company has done in the past and how strong the IT industry is right now. If Hexaware can raise a lot of money, it will show that they are important in today’s fast-changing digital economy. What they do next could change how other IT service companies operate too.
