Atul Nishar

Biography

Atul Nishar, founder-chairman of Hexaware Technologies, has been twice lucky in his entrepreneurial journey. This time, he has managed to sell his stake in Hexaware to Baring Private Equity Asia in one of the largest deals in the information technology (IT) sector this year. Nishar, a chartered accountant, founded the company in 1990, when the Indian sector was just about $100 million with no listed entity. As Nishar prepares to take over the role of non-executive chairman after Baring comes on board, he has taken the company to a revenue size of $364 million with 8,000 employees and 200 clients. Before Hexaware, he had set up computer training company Aptech in 1985. In 2002, Aptech was sold to SSI and he focused on growing Hexaware. Even as he exited Aptech, he continued to be on the board of the company till 2003. That seems to be the case at Hexaware, too.   Asked how long he intended to be with Hexaware, Nishar said: “After the transaction is complete, I will be happy to continue as the non-executive chairman of Hexaware as long as Baring wants me to.” Baring Private Equity Asia is investing $465 million in Hexaware to get a controlling stake. Baring is getting a 41.8 per cent stake from promoters and General Atlantic. Hexaware, though started at the same time as most of the other Indian IT companies, has focused on certain key segments so that it could provide a differentiating services to clients compared to multinational corporations and the large Indian IT firms. Baring’s investment in the company also shows the Indian IT services sector continues to attract PE players. Though, the returns made by General Atlantic do not resemble a multifold growth in its investment. According to reports, General Atlantic’s return would be around 1.3x to 1.4x. It had picked up a stake in the company in 2006 by investing $67.6 million. After the deal, General Atlantic will get around $88 million.

Research Interest

Atul Nishar, founder-chairman of Hexaware Technologies, has been twice lucky in his entrepreneurial journey. This time, he has managed to sell his stake in Hexaware to Baring Private Equity Asia in one of the largest deals in the information technology (IT) sector this year. Nishar, a chartered accountant, founded the company in 1990, when the Indian sector was just about $100 million with no listed entity. As Nishar prepares to take over the role of non-executive chairman after Baring comes on board, he has taken the company to a revenue size of $364 million with 8,000 employees and 200 clients. Before Hexaware, he had set up computer training company Aptech in 1985. In 2002, Aptech was sold to SSI and he focused on growing Hexaware. Even as he exited Aptech, he continued to be on the board of the company till 2003. That seems to be the case at Hexaware, too.   Asked how long he intended to be with Hexaware, Nishar said: “After the transaction is complete, I will be happy to continue as the non-executive chairman of Hexaware as long as Baring wants me to.” Baring Private Equity Asia is investing $465 million in Hexaware to get a controlling stake. Baring is getting a 41.8 per cent stake from promoters and General Atlantic. Hexaware, though started at the same time as most of the other Indian IT companies, has focused on certain key segments so that it could provide a differentiating services to clients compared to multinational corporations and the large Indian IT firms. Baring’s investment in the company also shows the Indian IT services sector continues to attract PE players. Though, the returns made by General Atlantic do not resemble a multifold growth in its investment. According to reports, General Atlantic’s return would be around 1.3x to 1.4x. It had picked up a stake in the company in 2006 by investing $67.6 million. After the deal, General Atlantic will get around $88 million.