Home / Companies / Start-ups /  Staffing services firm TeamLease files for IPO

Mumbai: Staffing services firm TeamLease Services Ltd on Monday filed its draft initial public offering (IPO) papers with the Securities and Exchange board of India (Sebi).

The firm, which is backed by private equity funds Gaja Capital and ICICI Venture’s India Advantage Fund (IAF), is looking to raise around 450-500 crore through the offer.

According to the draft red herring prospectus (DRHP), available on the website of investment banks managing the issues, the firm is looking to raise primary capital of 150 crore, while the rest of the offer will include sale of shares by both Gaja Capital and IAF.

In 2011, Gaja Capital and IAF invested 25 crore and 75 crore in the firm, respectively. Earlier in 2009, Gaja had 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 core business is providing staffing solutions across different sectors of the industry and diverse functional areas. The majority of its business involves providing employees engaged in sales, logistics and customer service functions.

As on 31 March 2015, the firm had provided employment to approximately 1.12 million people. The firm has almost 1,214 clients, with a network of eight offices across India.

TeamLease plans to utilize the proceeds raised from the IPO for funding existing and incremental working capital requirements; acquisitions and other strategic initiatives; for the upgradation of IT infrastructure; and for general corporate purposes.

The firm reported revenue of 2,021.8 crore in the fiscal year 2014-15, as compared to 1,539 crore in the previous year. Profit for 2014-15 was reported at 30.7 crore, as compared to 17.8 crore in the previous year.

TeamLease is the 27th firm to file its draft IPO papers with Sebi this year.

According to data from Prime Database, after a lull of two years, 15 firms have raised about 6,348 crore through IPOs in 2015.

This is already more than the total raised in the last two years. In 2014, five firms raised 1,201 crore from the IPO markets, data from Prime Database shows. In 2013, three firms had raised 1,284 crore.

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