Hexaware IPO: ₹9,950 Cr OFS Gets SEBI Nod for BSE-NSE

SEBI clears a fresh set of IPO proposals

Hexaware Technologies, backed by private equity major Carlyle, has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. The approval came through SEBI observation letters issued between January 14 and January 17, after draft papers were filed with the regulator between September and December. The IPO route remains active, and SEBI’s observations are a key step that allows companies to proceed with their public issue plans. Alongside Hexaware, other issuers including Vikran Engineering, PMEA Solar Tech Solutions, and Ajax Engineering also received SEBI approval to proceed with their IPOs. The companies have proposed listing of equity shares on the BSE and NSE, as mentioned in the filings.

Hexaware’s filing and the core structure of the issue

Hexaware Technologies filed its draft red herring prospectus (DRHP) with SEBI on September 6 for a proposed IPO of ₹9,950 crore. The issue is entirely an offer for sale (OFS) by the promoter, CA Magnum Holdings, which is part of the Carlyle Group. CA Magnum Holdings currently holds a 95.03% stake in Hexaware. Because the IPO is a complete OFS, the proceeds will go to the selling shareholder and not to Hexaware itself. The company has stated in the DRHP that the purpose of going public is to achieve the benefits of listing equity shares on stock exchanges and to carry out the OFS for the selling shareholder. The equity shares are proposed to be listed on both the BSE and NSE.

Why the IPO matters in the IT services market

If successful, Hexaware’s proposed public issue would be the biggest in India’s IT services sector since Tata Consultancy Services’ ₹4,700 crore IPO in 2004. The DRHP-based disclosures also describe the issue as India’s second-biggest public offering of 2024 after Hyundai Motor filed DRHP with SEBI to raise ₹25,000 crore in June. The scale of the planned ₹9,950 crore OFS places the transaction among the larger capital markets events of the year. Importantly, the structure means the transaction is designed primarily as a promoter stake sale rather than a capital raise for business expansion. That distinction can shape how investors interpret the offering, particularly in terms of balance sheet impact and deployment of funds.

A second listing on Indian stock exchanges

The draft documents indicate this would be the second time Hexaware Technologies will list its shares on domestic bourses. That detail is notable for market participants because it frames the IPO not as a first-time market entry, but as a return to public markets. The background in the filing also notes that almost a year after the delisting, the Carlyle Group acquired Baring’s stake in Hexaware. The current IPO proposal, therefore, sits within a longer ownership and listing history for the Mumbai-headquartered IT services company.

Business profile: clients, geography, and operating segments

Hexaware Technologies is described as a global digital and technology services company with artificial intelligence (AI) at its core. The company serves a diverse customer base, including 31 Fortune 500 organisations. It operates across key international markets, serving customers across the Americas, Europe, and Asia-Pacific, including India and the Middle East. According to the filing, Hexaware 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. This mix points to exposure across multiple industry verticals rather than dependence on a single end-market.

Financial snapshot disclosed in the filing

As per the financial details cited, Hexaware reported revenue from operations of ₹10,380 crore in FY2023, with profit after tax (PAT) of ₹997 crore. For the six months ended June 2024, revenue from operations was ₹5,684 crore and PAT was ₹553 crore. These figures provide a base reference for investors tracking operating scale and profitability as the company moves toward a public listing process. Since the issue is an OFS, these numbers do not indicate proceeds to fund operations, but they remain central to valuations and investor assessment.

Who is managing the IPO and where it will list

The book-running lead managers for Hexaware’s IPO are Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), and IIFL Securities. Such syndicates typically coordinate marketing, investor outreach, and the book-building process. The filings state that the equity shares are proposed to be listed on BSE and NSE, which is standard for large Indian IPOs seeking broad domestic investor access. The next steps typically include finalising offer details in the red herring prospectus and moving toward opening dates, once regulatory processes and market windows align.

What an OFS means for investors

Because the ₹9,950 crore IPO is completely an OFS, the company will not receive any funds from the issue. All capital proceeds will go directly to the selling shareholder, CA Magnum Holdings. For investors, this matters because it means there is no direct infusion into Hexaware’s balance sheet from the IPO itself. The rationale, as described by the company, is tied to listing benefits and enabling the selling shareholder’s stake sale. Market participants often look closely at OFS-heavy deals to understand promoter objectives, post-issue shareholding changes, and the alignment of interests after listing.

Key facts table

SEBI observation window and the broader IPO set

The six firms referenced in the approval batch filed their draft papers with SEBI between September and December. SEBI then issued observation letters between January 14 and January 17, which are treated as approval to proceed with the IPO. This regulatory step does not, by itself, indicate the final pricing, timing, or subscription outcome, but it is essential for taking the process forward. With multiple issuers receiving the go-ahead in the same window, the pace of listings will also depend on market conditions and each issuer’s readiness to launch.

Conclusion

Hexaware Technologies’ ₹9,950 crore IPO, structured fully as an OFS by Carlyle’s CA Magnum Holdings, has received SEBI approval and is proposed to list on the BSE and NSE. The filing positions it as a large transaction in the IT services segment, with comparisons made to TCS’s 2004 IPO. The company’s disclosed financials and customer profile provide investors with key reference points as the offering progresses. The next milestones will be the final IPO documents and the eventual announcement of the issue timeline.