This IT services provider is planning $7B IPO in India
What's the story
EQT AB-owned Virtusa is considering an initial public offering (IPO) in India, which could value the company at $7 billion. The Massachusetts-based IT services provider has already hired global banks Citigroup, Morgan Stanley and JPMorgan Chase & Co for the proposed IPO. Now, it is also looking to rope in domestic investment banks as part of its syndicate.
Market navigation
Roping in local investment banks is part of Virtusa's strategy
The move to rope in local investment banks comes as part of Virtusa's strategy to navigate the Indian market.
A source familiar with the matter told Reuters, "The company wants local banking relationships to navigate domestic markets."
The source added that domestic institutions bring specific placement talent for an offering of this scale.
IPO progress
Banker appointments to be finalized post discussions
The preparations for the IPO are moving forward as planned, according to another source.
There are ongoing discussions about where the holding structure will be registered for the IPO.
The banker appointments will be finalized once these discussions are complete.
Virtusa was acquired by Baring Private Equity Asia (BPEA) for around $2 billion in 2021, taking it off Nasdaq listings.
Company profile
IT delivery centers in multiple Indian cities
Founded in 1996, Virtusa has IT delivery centers in Hyderabad, Chennai, Bengaluru, Mumbai, as well as Gurugram.
The company provides digital engineering and IT outsourcing services across multiple geographies.
As of March 2026, Virtusa had some 47,000 employees globally with 86.2% of its workforce concentrated in South Asia (mainly India).
Market challenges
Proposed IPO comes amid pressure on credit profile
The proposed IPO comes as Virtusa faces pressure on its credit profile amid rising competition.
Credit-rating agency S&P Global recently revised its outlook on Virtusa from stable to negative, citing "margin pressures stemming from pricing pressures and a financial policy conducive to debt-funded acquisitions."
The negative outlook reflects the risk of a downgrade over the next 12 months if leverage remains near 6x or higher while cash flow deteriorates.