Mumbai: Staffing services firm TeamLease Services Ltd on Wednesday announced that it will launch its initial public offering (IPO) on 2 February to raise a little over ₹ 400 crore.
The firm has priced the offer in a band of ₹ 785-850 per equity share.
TeamLease is looking to raise capital to the tune of ₹ 150 crore through the issuance, while its private equity investors ICICI Venture and Gaja Capital will pare a part of their holding in the company.
Based on the price band set by the firm, the total issue size will range from ₹ 402.7 crore to ₹ 423.6 crore.
In 2011, Gaja Capital and India Advantage Fund (from ICICI Venture) invested ₹ 25 crore and ₹ 75 crore in TeamLease, respectively. In 2009, Gaja invested ₹ 50 crore in the firm.
IDFC Securities Ltd, Credit Suisse Securities (India) Pvt. Ltd and ICICI Securities Ltd are managing the offer.
TeamLease’s services span the entire supply chain of human resources in India, covering employment, employability and education. Its employment services include temporary staffing solutions, permanent recruitment services and regulatory consultancy for labour law compliance.
As of 31 March, TeamLease has provided employment to approximately 1.12 million people since 2002.
The IPO comes at time when the benchmark BSE Sensex has lost 6.22%, or 1,625.15 points, since the start of the year. This has raised concerns over a large pipeline of pending IPOs.
Over 30 firms filed their draft papers with the Securities and Exchange Board of India last year. Most of them have received the regulator’s nod to launch their share sales.
TeamLease will be the second IPO so far this calendar year.
On Wednesday, the IPO of Precision Camshafts Ltd opened to a slow start, witnessing just 6% overall subscription. Precision Camshafts is raising ₹ 400 crore through its share sale.
Last year, 21 firms raised almost ₹ 13,600 crore through the IPO route.