US-based IT major Cognizant Technology Solutions is evaluating a potential IPO and secondary listing on Indian stock exchanges — a move that could position it as India’s second-largest listed IT services company, trailing only Tata Consultancy Services (TCS). The plan underscores Cognizant’s intent to deepen ties with India, which serves as both its largest talent hub and a critical engine of growth.
Cognizant IPO: A Strategic Bid for Dual-Market Presence
Cognizant’s board and management, led by Chief Financial Officer Jatin Dalal, confirmed during the company’s post-earnings call that the idea of an Indian listing is under “active assessment.” The company is engaging legal and financial advisors to study regulatory, tax, and operational implications across both the US and Indian markets.
“We view this as a long-term project. While no decision has been made, any offering and secondary listing would be subject to market and other factors,” said Dalal.
The initiative involves two parallel possibilities:
- A primary offering, which would raise fresh capital by issuing new shares.
- A secondary listing, which would allow Cognizant’s existing NASDAQ-listed shares to trade on Indian exchanges.
If realised, the move would make Cognizant only the third IT services firm after Infosys and Wipro to have a presence on both US and Indian stock markets.
India: The Heart of Cognizant’s Global Machine
With over two-thirds of its 3,49,800 employees based in India, Cognizant’s dependence on the country is unmistakable. The firm operates extensive delivery centers in cities like Chennai, Hyderabad, and Pune — serving clients worldwide from its Indian base.
India is not only Cognizant’s biggest operational hub but also its strategic anchor. “An Indian listing could enhance Cognizant’s brand visibility, investor reach, and employee engagement in a market that drives most of its talent and delivery,” analysts note.
Industry observers say the move is as symbolic as it is financial — reaffirming India’s status as the epicentre of the global IT services economy.
Chasing the Valuation Gap
A key motivation behind the listing appears to be valuation arbitrage. Cognizant’s US shares currently trade at a price-to-earnings (P/E) ratio of around 13, compared to 22–23 times for Indian peers like TCS, Infosys, and HCLTech.
A market expert explained:
“India is a richly valued market compared to global peers. Similar companies in India often trade at far higher multiples, so Cognizant could be aiming to close that valuation gap through a domestic listing.”
An Indian listing could thus help unlock shareholder value, attract local investors, and align Cognizant more closely with homegrown IT majors in perception and market standing.
Financial Performance: Growth Amid Tax Hit
Cognizant reported a 7.3% YoY revenue growth for the July–September 2025 quarter, reaching USD 5.42 billion — its fastest pace in four quarters and above analyst expectations.
However, net income plunged 53% to USD 274 million, largely due to a one-time non-cash tax expense of USD 390 million. Despite this, operating margins rose by 40 basis points to 16%, aided by rupee depreciation and disciplined cost control.
The firm added 6,000 new employees in the quarter, primarily freshers, reflecting cautious optimism amid tightening visa regulations in the US.
Business Outlook
CEO Ravi Kumar S highlighted the strength of Cognizant’s financial services and healthcare verticals. The company’s TriZetto platform — a Business Process as a Service (BPaaS) solution for healthcare clients — continues to drive double-digit growth.
Kumar noted that spending in the BFSI sector is shifting from cost optimisation to innovation and enterprise-grade AI adoption. “Financial services will be one of our bellwether industries in 2026,” he said.
Cognizant IPO: Regulatory and Execution Hurdles
Analysts caution that executing a dual listing will not be straightforward. It involves navigating cross-border compliance, taxation, and securities regulations across jurisdictions. Both US and Indian regulators, including the SEC and SEBI, would need to align on reporting standards — a process expected to take time.
Nevertheless, if successful, Cognizant IPO could become a trailblazer for other multinational tech firms considering similar moves, broadening India’s capital market depth and reinforcing its global stature as a financial hub for technology companies.
Cognizant IPO: The Broader Picture
Congnizant IPO listing follows a trend of IT firms deepening engagement with Indian markets. Carlyle-backed Hexaware Technologies went public in early 2025, joining Happiest Minds Technologies in the new wave of tech IPOs.
For Cognizant, the timing may be ideal. India’s capital markets are buoyant, investor appetite for technology stocks remains high, and domestic institutions are increasingly interested in global-facing firms with strong India roots.
Conclusion
While still in the exploratory stage, Cognizant’s India IPO plan is more than a financial manoeuvre — it’s a statement of intent. It signals the company’s commitment to its Indian workforce, investors, and the market that built much of its success.
If the plan materialises, Cognizant could not only bridge its valuation gap but also redefine its global identity — as a truly transnational IT powerhouse equally anchored in Wall Street and Dalal Street.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.