EQT-Backed Virtusa Seeks Indian Investment Banks for Proposed 7 Billion Dollar Dalal Street IPO

Global information technology services provider Virtusa Corp., backed by Swedish private equity major EQT AB, is engaging with domestic investment banks to build out its merchant banking syndicate for a blockbuster initial public offering (IPO) on Indian bourses.

The Massachusetts-headquartered technology firm is reportedly eyeing a valuation of $7 billion (roughly ₹67,000 crore) or more, with plans to raise at least $1 billion through the share sale. The company is targeting a public listing around 2027.

Expanding the Syndicate for Domestic Reach

Virtusa had previously mandated global bulge-bracket institutions—including Citigroup, Morgan Stanley, and JPMorgan Chase & Co.—to structure and run the international leg of the transaction.

The decision to now bring leading Indian investment banks on board underscores the critical role domestic institutional investors (DIIs), high-net-worth individuals, and retail distribution networks will play in absorbing a mega issue of this magnitude. Local merchant bankers bring extensive branch penetration, deep relationships with Indian mutual funds, and expertise in navigating domestic listing compliance and book-building processes.

Background and Corporate Journey

Founded in 1996, Virtusa provides digital engineering, enterprise cloud transformation, and technology consulting services across 32 countries. While headquartered in Southborough, Massachusetts, the bulk of the company's operational workforce and execution infrastructure is anchored in India.

Key Indian delivery and offshore centres include:

• Hyderabad
• Chennai
• Bengaluru
• Mumbai
• Gurugram

Virtusa was formerly listed on the US Nasdaq exchange before being acquired and taken private by Baring Private Equity Asia (BPEA) in early 2021. EQT assumed control of the IT services major in 2022 when it completed its acquisition of BPEA, now known as EQT Private Capital Asia.

Why India Beckons for Global Tech Sponsors

Virtusa's planned listing reflects a widening trend among global private equity sponsors choosing Mumbai over New York or London for portfolio company monetisation:

Strategic drivers behind the Dalal Street listing:

• Superior Tech Valuations: Indian equities have consistently rewarded mid-tier and large-cap IT services companies with rich valuation multiples compared to peer averages in Western markets.
• Deep Domestic Liquidity: Persistent inflows via systematic investment plans (SIPs) into domestic mutual funds, alongside robust pension and insurance allocations, provide the balance-sheet depth needed to absorb billion-dollar issuances.
• Operational Alignment: With most of its operational delivery base and engineering headcount stationed in India, Virtusa enjoys high brand recognition among local institutional investors and industry analysts.

If executed at the projected size, Virtusa's public offer will rank among the largest IT services share sales in Indian capital market history, creating a fresh benchmark for private equity exits in the technology landscape.

Tags: Virtusa EQT IPO BSE NSE IT Services