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Hexaware Infosys mulls NASDAQ listing

Hexaware has two fully owned subsidiaries, both called Hexaware Technologies Inc, in the US and UK.

G S Krishnamurthy, managing director of Hexaware Infosystems, has been quoted as saying that "The whole exercise is in its preliminary stage and we are considering various options."

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Indications are that it will be some time before the company will approach NASDAQ. This is because of the complex holding structure of the Hexaware Group of Companies.

As a part of the Apple Group of Companies, the US subsidiary was a part of Apple Finance till some time back when it was 'de-subsidiarised' in favour of Hexaware Infosystems Limited at book value.

In the event of a NASDAQ listing, Hexaware will have to go in for complex restructuring, at the end of which Hexaware Technologies of US will end up as the parent company and Hexaware Infosystems its subsidiary.

A listing on NASDAQ would boost Hexaware's image as it is primarily an export-oriented company with the US and Europe being its prime markets.

The company is expected to report a turnover of $20 million for its current financial year ending December 31.

Last year, it reported a turnover of $15 million that also included revenue from distributing products for Oracle Corporation.

In 1998, the distribution business was transferred to Aptech Limited, a company of the Apple Group.

Said Avi Lele, president of Hexaware Technologies, "We have an established brand equity in the US with clients like Alliance Capital, Princeton University and Air Canada. A NASDAQ listing makes sense because it lends further credibility."

The NASDAQ listing also serves another purpose. Hexaware is also considering a 'share risk' model in which it will help start-up companies by imparting its specialised skills.

These inputs will be capitalised as Hexaware's contribution and rewarded whenever the start-up goes in either for an exit or an IPO.

Said Lele, "This, however, will be a small part of our activities."

Hexaware is primarily a software solutions and services company with a focus on legacy systems migration, reengineering, Y2K and ERP implementation. The company offers its ERP implementation services for ERP packages from companies such as SAP, Oracle and PeopleSoft.

It also has in-house expertise to deliver solutions for the client-server platform. The company offers a number of utilities for the Y2K bug too.

- Compiled from the Indian media

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