Quest Global, the Carlyle-backed engineering services company, has picked five banks to advise on a potential initial public offering in Mumbai that could raise as much as $1 billion, according to the Economic Times report.

Axis Capital, Kotak Mahindra Capital and JM Financial, alongside global banks Morgan Stanley and Citigroup, will advise on the offering. The deal may combine the issuance of fresh shares with sales by existing investors, and a draft prospectus is expected to be filed by December, though details of the transaction remain subject to change.

Quest Global is a Singapore-headquartered provider of engineering research and development (ER&D) services, serving industries including aerospace, healthcare, energy and transportation. Founded in 1997 by Ajit Prabhu and Aravind Melligeri, the company employs more than 17,000 people. Carlyle, one of the world's largest private equity firms, took a controlling stake in 2021 in a deal reported at the time to value the company at around $2 billion, and Bain Capital bought a minority stake in 2023.

Under India's listing framework, companies planning an IPO must file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for review before proceeding. Offerings that combine new share issuance with an offer for sale by existing shareholders are a common structure in large Indian listings, enabling companies to raise capital while giving early investors a route to a partial exit.

Quest Global's potential listing would come as India's market for new share sales has begun to recover after a subdued first half of the year. Only a small number of Indian IPOs have raised $1 billion or more, and an offering of that scale would place Quest Global alongside listed Indian ER&D peers such as L&T Technology Services, Tata Elxsi and Cyient.

Source: Economic Times Markets