(Dec 13): Carlyle Group Inc is considering an initial public offering (IPO) of engineering services firm Quest Global Services Pte in India, people familiar with the matter said, amid increasing investor interest in the nation’s stock market.

The US investment firm has held early talks with advisers about a possible share sale in Mumbai that may take place as soon as next year, the people said, asking not to be identified because the information isn’t public. A listing of Singapore-based Quest Global may help it raise about US$1 billion (RM4.43 billion), the people said.

A potential deal could value Quest Global at more than US$5 billion, one of the people said, adding that the company may also redomicile to India.

Deliberations are preliminary and details such as size and valuation could change, the people said.

A representative for Carlyle declined to comment, while Quest Global didn’t immediately respond to a request seeking comment.

Carlyle agreed to acquire a significant minority stake in Quest in 2023 in a transaction that saw Bain Capital and Advent International exit the firm.

India’s IPO market has been busy this year, with US$17.7 billion raised so far, putting it on the cusp of an annual record of US$17.8 billion raised in 2021, data compiled by Bloomberg show. The strong economy has enticed global investors, while the billions of dollars funnelled into domestic mutual funds every month have supported the equity markets even when foreigners were selling. Some of the country’s startups that had established their headquarters in Singapore are now considering redomiciling to India amid the country’s rapid growth.

Quest Global, which has more than 20,000 employees, provides engineering services around the world in industries such as aerospace and defence, automotive, energy, tech, healthcare and semiconductors, according to its website. Its partners include global companies such as Nvidia Corp and Sony Group Corp.

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