 "PE firm General Atlantic plans Hexaware exit strategy")
Private equity investor General Atlantic is looking to sell its stake in mid-tier IT services firm Hexaware Technologies via the secondary market once it finds the right valuation even thought the IT firm’s promoters have no intention of exiting the company, reported CNBC-TV18’s Kritika Saxena today.
Sources told CNBC-TV 18 that General Atlantic is in talks with other PE players and venture capitalists and is seeking a valuation of four times the company’s operating cash flow. GA, however, refused to comment on its exit strategy. In 2006, General Atlantic had invested Rs. 300 crore in Hexaware that had a revenue of Rs 370 crore, valuing the company at Rs. 1,700 crore at that time.
[caption id=“attachment_360070” align=“alignleft” width=“380” caption=“General Atlantic is in talks with other PE players and venture capitalists and is seeking a valuation of four times the company’s operating cash flow”]
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Meanwhile Hexaware promoters have been fully committed to building the business for the last 22 years and have no plans on selling their stake.
General Atlantic, which has also invested in Infotech Enterprises, IBS Software Services and Genpact had sold its stake in Patni Computer Systems last year.
Confident that the Heaware exit will provide good returns for GA, the US-based private equity firm is bullish on India and plans to invest $300 million in India in four sectors - financial services, internet, infrastructure and logistics.
Hexaware Technologies is currently trading half a percent higher on BSE at Rs 128.30.