New York: Genpact Ltd, a computer-services firm spun off by General Electric Co. (GE) in 2004, raised $494.1 million (Rs1,996 crore) in an initial public offering (IPO), as investors seek to benefit from soaring demand in India.
The company sold shares for $14 each, after setting a range of $16-18 last month, it said in a statement on Thursday. GE, General Atlantic Llc. and Oak Hill Capital Partners Lp. also sold stock in the IPO. Genpact, founded in 1997 as an India-based operation that served GE’s finance unit, is seeking funds to tap the surging demand for call centres and 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 and Service Companies said in July. Genpact is incorporated in Hamilton, Bermuda, and operates in cities including Hyderabad and Bangalore.
Tapping demand: Genpact is incorporated in Hamilton, Bermuda, and operates in cities including Hyderabad (above) and Bangalore.
The proceeds of the sale will be used to repay debt and for general corporate purposes, including potential acquisitions, Genpact said in regulatory filings. Genpact’s IPO follows successful stock market debuts by rivals. WNS Holdings Ltd, an Indian provider of data and voice services to companies in Europe and North America, and ExlService Holdings Inc., which provides services for banks and insurance companies, have gained more than 20% since selling shares last year.
GE sold 60% of Genpact, formerly known as GE Capital International Services, for $500 million to buyout firms General Atlantic and Oak Hill in 2004. Fairfield, Connecticut-based GE, the world’s second biggest firm by market value, owns about a third of Genpact and accounted for almost three quarters of its 2006 sales of $613 million.
Genpact plans to trade on the New York Stock Exchange starting Friday under the symbol “G”, the ticker of Gillette Co. until the consumer goods firm was bought by Procter & Gamble Co. in 2005. The IPO was managed by Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co.
Elizabeth Hester in New York contributed to this story