Cognizant weighs India IPO, raises guidance

More than three decades after it was founded, Cognizant Technology Solutions Corp. is weighing a debut on Indian stock exchanges, which would make it India's second-largest listed IT services company, right behind Tata Consultancy Services (TCS).

- Jas Bardia [e-mail]

The Teaneck, New Jersey-headquartered company listed its shares on the US tech-heavy exchange Nasdaq 27 years ago.

"Cognizant's board and management team regularly assess opportunities to enhance shareholder value. Towards this end, we have been assessing a potential primary offering and a secondary listing in India, with our legal and financial advisors," chief financial officer Jatin Dalal told analysts in a post-earnings interaction.

The company, which ended last year with $19.74 billion in revenue, has over two-thirds, or 241,500, of its employees in India.

For now, a public listing in India is a long-term project.

"We view this as a long-term project. While no decision has been made and any offering and secondary listing would be subject to market and other factors, we continue to assess and review the idea, and are committed to acting in the best interest of our shareholders," said Dalal.

For now, only Bengalurubased IT titans Infosys Ltd and Wipro Ltd have their shares listed in both the US and India, and an India listing would make Cognizant the third.