Hexaware Technologies, backed by private equity major Carlyle Group, on Thursday fixed a price band of Rs 674-708 per share for its Rs 8,750-crore ($1 billion) initial public offering (IPO). This will be the largest IPO in the Indian IT services sector, surpassing Tata Consultancy Services’ Rs 4,713-crore issue in 2004.
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The IPO will open for public subscription during February 12-14. The bidding for anchor investors will open for a day on February 11, the company said.
The public issue of Hexaware will entirely be an offer for sale (OFS) by promoter CA Magnum Holdings, part of Carlyle Group. At present, CA Magnum holds a 95.03% stake in the IT company.
The promoter initially planned to raise $1.2 billion when it had filed for regulatory approval in September. The size of offering has since been revised to $1 billion.
Chief executive Srikrishna Ramakarthikeyan said: “The delisting process started during the peak of Covid-19 when markets tanked, and the primary shareholder at that point saw an opportunity to buy whatever it didn’t want to sell at a pretty good rate. Also, five years ago, the confidence for bearing to sell down in the market was lower. Right now, I think the ability to do that is very high. The Indian markets have dramatically changed scale. So, going private offered more opportunities for them to sell.”
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Ramakarthikeyan said 62% of Hexaware’s revenue comes from large companies with annual revenues exceeding $5 billion. “Our customer pyramid has changed. That’s the best evidence of us increasing market share over a period of time. On a three-year basis, the number of clients who give us about $20 million has almost doubled. It went up from 6 to 11 as of 2023. The number of clients who give us $10 million has risen from 19 to 20.”
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