IT service provider Hexaware Technologies has submitted draft red herring prospectus (DRHP) with the market regulator SEBI for Rs 9,950 crore intial public offer (IPO). The IT firm was previously listed on the stock exchanges, before getting delisted in 2020.
If approved, the Hexaware Technologies issue would be the biggest issue in terms of size from the IT sector.
Currently, the record for the largest IT sector IPO in the domestic market is held by Tata Group's IT company TCS, which is also India’s largest IT company. Tata Consultancy Services came up with Rs 4,713 crore IPO two decades ago. Hexaware Technologies' planned IPO twice the size of TCS’s IPO.
According to the DRHP, the IPO will be an offer for sale only. Hexaware Technologies has appointed five investment banks — Kotak Investment Banking, Citi Global Markets, JP Morgan, HSBC Securities, and IIFL Securities — as managers for the IPO. Notably, Hexaware Technologies is promoted by the American private equity firm Carlyle Group, which holds about 95% of the company’s shares.
Company Business Model
Hexaware Technologies is a global technology company with approximately 61 offices worldwide. The company employs 31,000 people and serves 370 clients. It has achieved an annual revenue of $1.3 billion, with its core business focused on artificial intelligence.
Hexaware Technologies was once listed on the stock market. The company first went public in June 2002 but was delisted in 2020. The decision to take the company private was made by its former promoter, Bearing Private Equity Asia.