Carlyle-backed Hexaware Technologies' collects ₹2,598 crore from anchor investors

Private equity major Carlyle Group-backed Hexaware Technologies Ltd has mobilised ₹2,598 crore from anchor investors, an update showed with the exchange.

Those who were allotted shares in the anchor round, included SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Kotak MF, Aditya Birla Sun Life Insurance, Bajaj Life Insurance, Singapore government and Monetary Authority of Singapore, according to a circular uploaded on BSE's website.

Capital Group, Fidelity International, Abu Dhabi Investment Authority, JP Morgan, Goldman Sachs, Custody Bank of Japan, BNP Paribas and Societe Generale, among others, have also participated in the anchor round.

As per the circular, the company has allotted nearly 3.67 crore shares to 96 entities at ₹708 apiece, which is also the upper end of the IPO price band. This aggregates transaction size to ₹2,598 crore.

The ₹8,750 crore Initial Public Offering (IPO) of Hexaware Technologies opened for public subscription on Wednesday and will conclude on February 14.

The company has set a price band at ₹674-708 per share for the IPO.

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 equity shares worth ₹8,750 crore by promoter CA Magnum Holdings, part of Carlyle Group.

At present, CA Magnum Holdings holds 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 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 and having a diverse range of customers, including 31 of the Fortune 500 organisations. It serves customers across the Americas, Europe and Asia-Pacific (including India and 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 and deliver 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 will be listed on BSE and NSE.