Future IPOs: SEBI approves five others to float IPOs, and Carlyle acquires Hexaware Tech

Future IPOs: Two of the companies that were approved by SEBI on draft papers to raise money through public issues or initial public offerings (IPOs) are Vikran Engineering and the IT behemoth Hexaware Technologies.

Future IPOs: The Securities and Exchange Board of India (SEBI), which oversees the capital markets, has already given its clearance for six significant companies to seek money through initial public offerings (IPOs).

The draft papers of Hexaware Technologies, PMEA Solar Tech Solutions, Scoda Tubes, Ajax Engineering, All Time Plastics, and Vikran Engineering were updated by SEBI on Monday, January 20. Nonetheless, Anand Rathi Share and Stock Brokers' IPO documents were returned by the market watchdog.

On January 14 and 15, respectively, the securities market regulator sent out observation letters about PMEA Solar Tech Solutions, Vikran Engineering, and Scoda Tubes' preliminary documents. The observation letter on their draft red herring prospectus was sent to Hexaware Technologies and Ajax Engineering on January 16 and to All Time Plastics on January 17.

The only companies on the list that are simply providing an offer-for-sale (OFS) component for their public offering are Hexaware Technologies Ltd. and Ajax Engineering Ltd.

Through the public issue, PMEA Solar Tech Solutions, All Time Plastics, and Vikran Engineering Ltd. are providing a new issue as well as an offer-for-sale (OFS). According to the SEBI filing, Scoda Tubes is the first company launching an entirely new issue of shares through an IPO.

For the offering, promoters would sell Hexaware Technologies shares valued at ₹9,950 crore.

If successful, Hexaware's initial public offering (IPO) would be the biggest in the nation's IT services sector since Tata Consultancy Services' original share sale, which cost ₹4,713 crore more than 20 years ago.

Kotak Investment Banking, Citi Global Markets, J.P. Morgan, HSBC Securities and Capital Markets, and IIFL Securities have been engaged by Hexaware Technologies, which is being promoted by the US private equity company Carlyle, to oversee the share sale.

The largest private equity transaction in Indian history occurred in 2021 when Carlyle paid over $3 billion to acquire Hexaware from Baring Private Equity Asia (now EQT). After four years, Hexaware will be returning to the domestic stock exchanges if its listing preparations are successful.