Carlyle weighs $1 billion IPO for Hexaware

IT services provider Hexaware Technologies, which delisted from the Indian stock markets, may make a comeback to the bourses, possibly with an initial public offering which would be the largest since that of Life Insurance Corporation of India.

“There are plans for an IPO. However, the timeline and size is not yet clear,” a source familiar with the matter associated with Hexaware told FE.

finova to continue partnership with Hexaware to expand technological capabilities

Meanwhile, Bloomberg reported on Tuesday, citing sources, that the global investment firm Carlyle Group is exploring options for its portfolio company, Hexaware Technologies, including an IPO, a stake sale to an investment firm, or an industry peer.

The US investment firm is in talks to list the company this year or next, which could raise $1 billion, and the company is likely to be valued at $4 billion, the report said. However, since the discussion is still in a preliminary stage, details on aspects such as size and value may change, it added.

Hexaware Technologies had voluntarily delisted from both BSE and National Stock Exchange in November, 2020, after the company’s then promoters had accepted the discovered delisting price of Rs 475 per share. This was also the first successful delisting on the Indian bourses since December, 2018.

Nearly a year after the delisting, the Carlyle Group bought a 62% stake in the company from Baring Private Equity Asia for nearly $3 billion, in October 2021.

While an IPO is the preferred option for Hexaware, alternatives include a stake sale to an investment firm or industry peer, Bloomberg report said.

Hexaware provides IT and business process outsourcing services. It also offers cloud, data and artificial intelligence services.