Hexaware IPO Raises $1 Billion

Indian IT and BPO services provider Hexaware Technologies has listed its shares on the Bombay Stock Exchange (BSE) following a significant initial public offering (IPO).

The IPO, which is the largest in India’s IT services sector to date, raised ₹8,750 crore (approximately $1 billion), providing the company with substantial capital to enhance its technological infrastructure and pursue international expansion.

The primary objective of this IPO was to facilitate a partial exit for the promoter, CA Magnum Holdings, a subsidiary of the Carlyle Group.

Carlyle acquired Hexaware in 2021 for an estimated $3 billion and, through this offering, has reduced its stake from 95% to approximately 74.1%, while still maintaining a controlling interest in the company.

Hexaware has demonstrated robust financial performance, with revenues surpassing $1 billion in both 2022 and 2023.

The company’s revenue experienced a compound annual growth rate (CAGR) of 13.7% between FY2021 and FY2023, outpacing the global industry average. Analysts project that Hexaware will continue this momentum, anticipating a CAGR of 10.5% through 2029.

This optimistic outlook is attributed to the company’s proprietary platforms, such as Tensai and Amaze, which bolster its capabilities in automation and cloud services.

Strategically, Hexaware is focusing on partnering with large enterprises with revenues exceeding $2 billion, employing its “Land, Ramp, and Expand” approach to client acquisition and growth.

Currently, it serves 31 Fortune 500 organizations across diverse sectors, including financial services, healthcare, and manufacturing.

Its global operations encompass 39 delivery centers in 28 countries, including Mexico, supported by a workforce of over 32,000 employees.