Carlyle-backed Hexaware Technologies' ₹8,750-crore IPO to open on February 12

Private equity major Carlyle Group-backed Hexaware Technologies Ltd on Thursday fixed a price band of ₹674 to ₹708 per share for its ₹8,750-crore initial public offering (IPO).

The IPO will open for public subscription from February 12 to 14. The bidding for anchor investors will open for a day on February 11, the company announced.

At the upper end of the price band, the company has been valued at over ₹43,000 crore.

The initial share-sale of the Mumbai headquartered company is a complete Offer-for-Sale (OFS) of ₹8,750 crore by promoter CA Magnum Holdings, part of Carlyle Group.

At present, CA Magnum Holdings holds a 95.03% stake in the IT company.

Since the entire issue is an OFS, all the proceeds from the IPO will go directly to the selling shareholder, rather than to the company.

Hexaware's maiden public issue would be the largest in the country's IT services sector since Tata Consultancy Services' over ₹4,700-crore initial public offering over two decades ago.

Hexaware Technologies is a global digital and technology services company with artificial intelligence (AI) at its core with a diverse range of customers, including 31 of Fortune 500 organizations. It serves customers across the Americas, Europe and Asia-Pacific (including India and the Middle East).

The company manages its business through six operating segments: financial services, healthcare and insurance; manufacturing and consumer; Hi-tech and professional services; banking, and travel and transportation.

The IT company's offerings encompass five broad services: Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services. It delivers its services through AI-enabled digital platforms such as Rapid for digital transformation, Tensai for AI-powered automation and Amaze for cloud adoption.

Hexaware's previous promoter, Baring Private Equity Asia, delisted the company in 2020. Almost a year after the delisting, the Carlyle Group acquired Baring Private Equity Asia's stake in the company in October 2021.

For the nine months ended September 2024, the company's net profit stood at ₹853.3 crore and revenues at ₹8,820 crore.

The company has reserved half of the issue size for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.

Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, JP Morgan India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd and IIFL Securities Ltd are the book-running lead managers responsible for managing the company's IPO.

The equity shares are proposed to be listed on BSE and NSE.