M&A activity & fund-raising: Buzzwords at NASSCOM summit

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M&A activity & fund-raising: Buzzwords at NASSCOM summit

M&A activity seems to be the buzz word at the NASSCOM summit. CNBC-TV18's Krithika Saxena spoke to the IT companies for the latest happenings.

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Excerpts from Reporter's Diary on CNBC-TV18 Watch the full show »

M&A activity seems to be the buzz word at the NASSCOM summit. Hexaware spoke exclusively to CNBC-TV18's Krithika Saxena on its sale plans.

Companies at the NASSCOM summit largely were largely talking about the conservative outlook going forward, but one important thing that M&A and fund raising action seems to be heating up in the sector.

Hexaware's perspective stake sale has been in the works since quite a sometime. Reportedly, they have been looking at selling stake and now, Hexaware chief has confirmed it to CNBC-TV18. "General Atlantic has 15% stake in Hexaware, and I would say that if they choose to exit, a very likely candidate could be another PE fund and we would enable a smooth takeover but first, they have to inform us," told Atul Nishar, chairman, Hexaware.

The company also confirmed that there were a couple of global IT players that were eyeing Hexaware from time to time. However, they didn't really confirm whether or not the promoters were confirming to selling stake or not, but yes, there are players on the hunt. If their valuation is attractive, GA definitely could sell stake and we could see a prospective sale from a global IT player. Of course, we can't jump the gun, so let us wait and keep a watch in this space.

Besides that, Mphasis for one is looking at a perspective buyback. They have around USD 370 million in their books right now and will be deciding on a buyback by March. WNS also told CNBC-TV18 that they have already raised around USD 60 million from Warburg Pincus that brought down stake from around 49% to 29%. Prospectively, Warburg Pincus could dilute further.