Hexaware Technologies promoters — Atul Nishar and GA Global Investments — will sell their 41.8 percent stake to Baring Private Equity Asia for around $242 million.
The total potential investment of over $465 million will be the largest investment made by Baring Asia in India.
This will be one of the largest ever foreign investments in the IT services sector in India. (Baring Asia may buy IT services firm Hexaware for $400 million )
At present, Atul Nishar and family hold 27.7 percent stake and GA Global Investments holds 14.1 percent stake in Hexaware, a global provider of IT & BPO services and consulting.
As part of the deal, Baring Asia will purchase approximately 125 million Hexaware shares.
Baring Asia will pay Rs 126 or Rs 135 per share aggregating Rs 1,575–1,687 crore (approximately $242-260 million based on INR/USD rate of 65), with the higher price of Rs 135 per share being payable on Baring Asia reaching 50 percent or above aggregate shareholding in Hexaware in the transaction.
Baring Asia will also make an open offer to the public shareholders of Hexaware to purchase up to an additional 26 percent stake at a price of Rs 135 per share aggregating Rs 1,058 crore (approximately $160 million).
Atul Nishar founded Hexaware in 1990.
Hexaware will remain a public company, and the management team led by PR Chandrasekar will continue ensuring continuity of relationships with all stakeholders particularly customers, employees and public shareholders.
Atul Nishar will continue as non-executive chairman of Hexaware and PR Chandrasekar will continue as CEO of Hexaware.
Hexaware has 8,700 employees, over 200 active customers, 8 global development centres, presence in 35 countries worldwide, and reported revenues of $364 million for the financial year ended December 31, 2012.