DBT Bureau
Bengaluru, 9 September 2024
After close to four years of delisting, US private equity giant Carlyle-controlled Hexaware Technologies has filed draft papers with market regulator, Sebi for an Initial Public Offering (IPO).
According to the draft red herring prospectus (DRHP), the company plans to raise Rs 9,950 crore through an Offer for Sale (OFS) issue.
An Offer for Sale (OFS) is a way for existing shareholders to sell their shares in a company, as opposed to an Initial Public Offering (IPO), where a company issues new shares to the public.
This will be India’s largest public offer by any IT company after TCS’ Rs 4,713 crore issue in the early 2000s.
Important facts from Hexaware’s DRHP:
- Revenue from operations in 2023 (January-December financial year cycle): Rs 10,380 crore
- Revenue from operations during January-June period of 2024 (first six months): Rs 5,684 crore.
- Revenue contribution from Financial Services vertical in 2023: 27.2%
- Revenue contribution from Financial Services vertical during January-June period of 2024 (first six months): 28.4%
- Revenue contribution from Healthcare & Insurance vertical in 2023: 21.7%
- Revenue contribution from Healthcare & Insurance vertical during January-June period of 2024 (first six months): 21.1%
- Net headcount addition in 2023: (316)
- Net headcount addition during January-June period of 2024 (first six months): 3,578
- Employee Utilization Rate in 2023: 79.7%
- Employee Utilization Rate during January-June period of 2024 (first six months): 82.4%
- Top 5 customers contribution in revenue term in 2023: 25%
- Top 5 customers contribution in revenue term during January-June period of 2024 (first six months): 25.4%
- EBIDTA margin in 2023: 15.3%
- EBIDTA margin during January-June period of 2024 (first six months): 15.6%
- Revenue by geography in 2023: US-71.5%, Europe- 22.1%, Asia-Pacific- 6.4%
History:
- In 2021, Carlyle acquired majority stake in Hexaware from Baring Private Equity Asia (now EQT) for around $3 billion, making it India’s biggest-ever private-equity deal.
- Subsequently, Carlyle delisted the firm for taking various cost saving measures apart from streamlining its operations.
