Virtusa Corp, a global information technology services firm owned by Swedish private equity giant EQT, is exploring an initial public offering in India that could value it at $7 billion or more, according to reports from The Hindu BusinessLine. The company is looking to raise at least $1 billion in the potential listing, with sources indicating this would be India's biggest IPO so far in what shapes up to be a busy year for public offerings.
Citigroup, JPMorgan, and Morgan Stanley have been tapped to work on the deal, with more banks potentially being added later, as reported by The Hindu BusinessLine. A road show in the second half of this year will help determine the listing venue, deal size, valuation, and whether to proceed with the IPO. The listing could happen later in 2026 or 2027, according to sources familiar with the matter.
Founded in 1996 and headquartered in Massachusetts, Virtusa employs 30,000 people in 32 countries, according to the company's website. The firm has significant operations in India, including IT delivery centres in Hyderabad, Chennai, Bengaluru, Mumbai, and Gurugram. At around $1 billion, Virtusa's potential listing would be India's biggest so far in what shapes up to be a busy year, with $2.75 billion already raised from 64 listings, as reported by LSEG data.
EQT, which had around €270 billion ($316 billion) in assets under management at the end of last year, gained control of Virtusa in 2022 when it acquired Baring Private Equity Asia, which took the technology firm private from Nasdaq in 2021. The Swedish investment firm last week raised $15.6 billion for its latest private equity Asia fund, the largest pool of capital ever assembled for the region, as reported by The Hindu BusinessLine.
A Virtusa listing would allow EQT an exit from one of its main Asia technology bets at a time when private equity firms globally are under pressure from investors to return capital. The potential IPO comes amid broader market volatility, with Sensex closing at 76,886.91 points, down 416.72 points or 0.54%, and Nifty 50 ending at 23,995.70 points, declining 97.00 points or 0.40%. Market experts attribute the subdued sentiment to persistent global factors and shifting investor preferences, with foreign institutional investor selling and elevated crude oil prices contributing to the current market weakness. Recent market movements have led to a meaningful fall across segments, helping valuations move closer to long-term averages, with the Nifty trading at about 21 times trailing earnings, which is marginally below its 10-year average.
