Virtusa IPO: $1bn India plan targets $7bn value in 2026

What is being planned

Virtusa Corp, a global information technology services firm owned by Swedish private equity group EQT, is exploring an initial public offering in India, according to a Reuters report citing people familiar with the matter. The potential listing could value the company at $1 billion or more. The deal is also expected to be large by domestic standards, with the company looking to raise at least $1 billion, according to sources quoted in the report.

If it proceeds at that scale, the offering would stand out in India’s primary market in 2026. The same report cited LSEG data showing that $1.75 billion has already been raised from 64 listings so far this year, and a $1 billion Virtusa issue would be the biggest Indian listing so far this year.

Deal size and valuation signals

People familiar with the discussions said Virtusa is working with a $1 billion-plus valuation expectation. The report also noted that Virtusa is looking to raise at least $1 billion. Both the valuation and the fundraise could still change as the process advances, and the final structure is expected to depend on investor feedback during marketing.

The valuation target is also notable relative to what EQT paid to take the company private. Reuters reported that the $1 billion-plus target would be a significant jump from the around $1 billion EQT paid to take Virtusa private in February 2021.

Roadshow in the second half will shape the decision

A key milestone highlighted in the Reuters report is a roadshow planned in the second half of the year. One of the sources said the roadshow will help determine the listing venue, the final deal size, the valuation, and whether the company proceeds with the transaction.

This sequencing matters because it indicates the IPO is not yet a fixed, filed plan. Instead, it is being explored, with the final call expected after testing investor appetite.

Banks advising the potential IPO

The Reuters report said Citigroup, JPMorgan, and Morgan Stanley have been tapped to work on the deal, and more banks could be added later. This line-up signals that the company and its owner are preparing for a sizeable transaction with global institutional participation.

On responses, Virtusa and Morgan Stanley did not respond to Reuters’ requests for comment, while EQT, Citi and JPMorgan declined to comment. Sources cited by Reuters asked not to be named because the discussions are private.

Virtusa profile and India footprint

Virtusa was founded in 1996 and is headquartered in Massachusetts, according to details cited from its website in the Reuters report. The company employs 30,000 people across 32 countries.

India is a central delivery base for the company. The report said Virtusa’s presence in India includes IT delivery centres in Hyderabad, Chennai, Bengaluru, Mumbai, and Gurugram.

Why EQT’s ownership is central to the move

The report indicated that the main driver behind the potential public debut appears to be Virtusa’s owner, EQT. It said EQT took control of Virtusa in 2022 after acquiring Baring Private Equity Asia. It also linked the contemplated IPO to the owner’s broader portfolio actions and monetisation cycle.

Separately, the broader text provided alongside the Reuters excerpt also noted EQT’s India investing and exits. It said EQT has invested more than its target of $1 billion in India over the past few years, and highlighted exits including $1.2 billion from Coforge and an over $100 million exit from CMS Info Systems in 2023. It also cited the December 2024 sale of O2 Power to JSW Neo Energy for an enterprise value of $1.47 billion (₹12,468 crore).

India IPO market context remains active

The Reuters excerpt described the year as shaping up to be busy. It cited LSEG data showing $1.75 billion raised from 64 listings so far this year. That backdrop is relevant because a large IT services float would compete for investor attention against other pipeline deals.

The additional IPO market data in the provided text shows how active recent years have been. It said 103 companies raised a record ₹175,901 crore through mainboard IPOs in 2025, about 10% higher than the ₹159,784 crore mobilised by 91 issues in 2024, according to primedatabase.com.

What investors will watch next

Near-term attention is likely to stay on the second-half roadshow referenced by Reuters, because it is expected to clarify whether Virtusa lists in India, how much it raises, and where valuation expectations settle.

Beyond the IPO mechanics, the report framed key risks as timing, valuation, and competition, while noting there were no significant negative reports found on current management or operations in the accompanying summary text.

Market impact and why this matters

A $1 billion IPO would be a meaningful test of demand for large, IT services-linked listings in India, particularly in a year already seeing multiple listings, as reflected in the LSEG figures cited. For EQT, an India listing exploration also fits a broader pattern described in the provided text of harvesting returns from India-linked bets, and preparing other portfolio companies for public markets.

For India’s capital markets, the transaction could add another global technology services name to domestic exchanges, and would likely be tracked as a benchmark for pricing and appetite for sizeable, sponsor-backed issues.

Key facts at a glance

Conclusion

Virtusa’s exploration of an India IPO sets up one of the larger potential offerings discussed for the market so far this year, with a reported $1 billion-plus valuation ambition and at least $1 billion in targeted proceeds. The next concrete signal is expected from the second-half roadshow, which sources said will help decide venue, size, valuation, and whether the company proceeds.