Carlyle picks JPMorgan and Kotak to help arrange Hexaware IPO: Report

Carlyle Group Advances Plans for Hexaware Technologies IPO with JPMorgan and Kotak.

Expert Analysis:

• Strategic Partnerships: By selecting JPMorgan and Kotak Mahindra Bank for the IPO, Hexaware leverages their substantial financial expertise and market reach.

• IPO Timing and Financial Scope: The IPO is slated for as early as the fourth quarter of this year, as disclosed by undisclosed sources due to confidentiality. Additional bankers are expected to join for the anticipated $1 billion offering, potentially valuing the Indian IT company at up to $6 billion, according to the sources.

• IPO Size and Historical Significance: The IPO, valued at approximately $1 billion, is poised to become India's largest since the 2022 Life Insurance Corp. of India offering, as per Bloomberg data. However, specifics like the IPO's size and the company's valuation remain subject to potential adjustments, according to insider sources.

• Offerings and Acquisition History: Hexaware offers IT, business process outsourcing, cloud, data, and AI services. Carlyle acquired Hexaware from Baring Private Equity Asia in 2021; Baring is now part of Sweden’s EQT AB.

• Market Dynamics: The decision reflects broader trends where global investors are increasingly drawn to India’s technology sector, highlighting its potential for high returns amidst a growing economy.

• India's Booming IPO Market: India emerges as a hotbed for deals, especially IPOs, as global investors eye its promising growth. Sectors like automakers, electric-scooter manufacturers, and IT firms are exploring share sales this year to leverage India's burgeoning market potential.