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Hexaware Technologies Unlisted Shares

Carlyle-promoted Hexaware picks 5 i-banks for mega IPO at $5-6-bn valuation, India's biggest in IT services since TCS

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Carlyle-Backed Hexaware Partners with Five Investment Banks for Record-breaking IPO at $5-6 Billion valuation, Marking India's Largest IT Services Offering Since TCS.

Expert Analysis:

  • Hexaware Technologies' IPO Preparation: Hexaware Technologies, backed by Carlyle, prepares for a substantial IPO.

  • Lead Banks Selection: Lead banks include Kotak Mahindra Capital, Citi, and JP Morgan along with IIFL Capital and HSBC Securities .

  • Targeted Fundraising: IPO aims to raise $1 billion (Rs 8,350 crore) at a valuation ranging between $5 billion and $6 billion (Rs 41,750 crore to Rs 50,100 crore).

  • IPO Potential and Acquisition Details: Potential for India's largest IT services IPO since TCS' Rs 4,713 crore issue in 2002, contingent upon listing success. Carlyle acquired Hexaware in 2021 from Baring Private Equity Asia for approximately $3 billion.

  • Corporate Profile and Recent Acquisition: Hexaware, a Mumbai-based global tech firm, operates in 50+ offices across 19 countries, with 30,000+ employees, serving 370+ clients, generating $1.3 billion in annual revenue. Acquisition of Softcrylic targets data and analytics enhancement.

  • Market Return and AI Transition Strategy: 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 company focusing on an "AI-first world" strategy with 80% of tech talent (over 15,000 employees)  trained in transformative solutions.

Takeaways
  • Strategic Shift:

    • Hexaware's IPO signifies a strategic shift towards leveraging its technological strengths.

  • Confidence in Growth:

    • Valued between $5 billion and $6 billion, the IPO reflects confidence in Hexaware's growth.

  • Enhanced Capabilities:

    • Softcrylic acquisition strengthens data capabilities, positioning Hexaware as an IT services leader.

  • Commitment to Innovation:

    • CEO R Srikrishna's focus on AI highlights the company's dedication to innovation and future readiness.

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