EQT Backed Virtusa Aims for $1 Billion in Indian Initial Public Offering

Virtusa Corp Eyes $7 Billion IPO in India

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 four people with knowledge of the matter, the company is looking to raise at least $1 billion.

The listing process is expected to unfold in the second half of this year, with a road show helping to determine the listing venue, deal size, valuation, and whether to proceed. The investment banks Citigroup, JPMorgan, and Morgan Stanley have been tapped to work on the deal, with the possibility of additional firms being added later.

Virtusa's Global Presence

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Founded in 1996 and headquartered in Massachusetts, Virtusa employs 30,000 people in 32 countries. The company has a significant presence in India, with IT delivery centers in Hyderabad, Chennai, Bengaluru, Mumbai, and Gurugram.

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, according to LSEG data. 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.

EQT, which had around 270 billion euros ($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 recently raised $15.6 billion for its latest private equity Asia fund, the largest pool of capital ever assembled for the region.

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