JPMorgan Asked By Carlyle Group to Help in the Initial Public Offering of its Company in India

By Thea Felicity

Apr 14, 2024 10:26 AM EDT

NY Attorney General Files Lawsuit Against JP Morgan Chase Over Bear Stearns Fraud — NEW YORK, NY - OCTOBER 02: People pass a sign for JPMorgan Chase & Co. at it's headquarters in Manhattan on October 2, 2012 in New York City. New York Attorney General Eric Schneiderman has filed a civil lawsuit against JPMorgan Chase alleging widespread fraud in the way that mortgages were packaged and sold to investors in the days that lead-up to the financial crisis. The allegations, which were filed in New York State Supreme Court, concern business that transpired during 2006 and 2007 at a now-defunct Bear Stearns, the failed Wall Street firm which was purchased in 2008 by JPMorgan Chase.
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Carlyle Group Inc. has enlisted the help of JPMorgan Chase & Co. and Kotak Mahindra Bank to facilitate the forthcoming initial public offering (IPO) of Hexaware Technologies Ltd. in Mumbai, according to BNN Bloomberg.

The IPO, slated for the fourth quarter of this year, aims to raise $1 billion and could potentially value the Indian IT firm at $6 billion. Although final decisions are pending, this move would enable Carlyle to reduce its stake in Hexaware.

If realized, this IPO would mark one of the largest offerings in India since 2022.

For context, the Carlyle Group acquired Hexaware, a provider of IT and business outsourcing services, in 2021.

With India's IPO market on the rise, global investors are increasingly eyeing opportunities in the country's growing sectors, including automotive, electric vehicles, and technology.

What This Means for JPMorgan and Kotak

For JPMorgan Chase & Co. and Kotak Mahindra Bank, their involvement in facilitating Hexaware Technologies Ltd.'s IPO signifies an opportunity to use their expertise in investment banking and capital markets.

By assisting Carlyle Group Inc., both banks can improve their reputation and expand their presence in the Indian financial market.

Facilitating high-profile IPOs like Hexaware's can also generate substantial fee income for the banks involved. Successful execution of the IPO could strengthen their relationships with Carlyle and potentially open doors for future collaboration on similar transactions.

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