Genpact Ltd, a computer-services company spun off by General Electric Co. in 2004, boosted a planned initial share sale to as much as $731 million (Rs2,924 crore) as it seeks to take advantage of soaring demand in India.
The price for the sale was set at $16-18 a share, according to a registration statement filed on Monday. In a 11 May filing, Genpact said it expected to raise $600 million.
Genpact, which began in 1997 as an India-based unit that assisted GE’s finance division, is seeking funds to benefit from surging demand for call centre and back-office services. India’s computer-services industry will grow by as much as 27% to $50 billion in the 12 months ending March 2008, the National Association of Software & Service Companies said this month.
The firm, which is incorporated in Bermuda, and operates in cities including Hyderabad and Bangalore, will use the proceeds of the share sale to repay debt and for general corporate purposes, including potential acquisitions.
GE sold 60% of the unit, formerly known as GE Capital International Services, for $500 million to buyout firms General Atlantic Partners LLC and Oak Hill Capital Partners LP in 2004. Fairfield, Connecticut-based GE, the world’s second-biggest company by market value, owns about one-third of Genpact and accounted for almost three quarters of the company’s $613 million in 2006 sales.
Genpact expects to sell 17.6 million shares, and GE, Atlantic Partners and Oak Hill plan to sell the same amount, the filing said. The underwriters have an option to buy 5.29 million shares, Genpact said.
Genpact plans to trade on the New York Stock Exchange under the symbol “G,” the ticker of Gillette Co. until the firm was bought by Procter & Gamble Co. in 2005.
The initial public offering is being managed by Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co. The shares will go on sale “as soon as practicable,” Genpact said.
Shares of GE rose 62 cents to $40.12 at 4.02pm on Monday in New York Stock Exchange composite trading.
They’ve gained 7.8% this year.