Carlyle weighs $1 billion IPO for Indian IT firm Hexaware Technologies
In a move that could potentially shake up India’s technology sector, global investment firm Carlyle Group Inc is exploring strategic options for its portfolio company, Hexaware Technologies Ltd. Among the possibilities under consideration is an initial public offering (IPO) in Mumbai that could raise a staggering $1 billion, according to a report by Bloomberg.
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The sources, who requested anonymity due to the sensitive nature of the discussions, reveal that Carlyle is engaging with potential underwriters to prepare for an IPO later this year or in 2025. If successful, the share sale could value Hexaware, an Indian information technology and business process outsourcing services provider, at a remarkable $4 billion or more, the report added.
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Should Hexaware proceed with the IPO, it would mark a significant milestone, as it would be the largest public listing in India since the highly anticipated offering of Life Insurance Corporation (LIC) in 2022. LIC’s shares initially struggled but have since largely recovered, reflecting the resilience of the Indian market, as per the report.
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While an IPO appears to be the preferred option for Carlyle, the sources indicate that alternatives, such as a stake sale to an investment firm or an industry peer, are also being explored. However, they emphasise that these considerations are preliminary, and no final decisions have been made regarding the size, valuation, or timing of a potential transaction, as per the report.
Hexaware, which Carlyle acquired from Baring Private Equity Asia (now part of Sweden’s EQT AB) in 2021, offers a range of services, including information technology, business process outsourcing, cloud computing, data analytics, and artificial intelligence solutions.
(With inputs from Bloomberg)
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Published: 26 Mar 2024, 02:43 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.