India: Staffing services firm TeamLease files for IPO, to raise about $75m

Visual sourced from TeamLease website

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 Rs.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 Rs.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 Rs.25 crore and Rs.75 crore in the firm, respectively. Earlier in 2009, Gaja had invested Rs.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 Rs.2,021.8 crore in the fiscal year 2014-15, as compared to Rs.1,539 crore in the previous year. Profit for 2014-15 was reported at Rs.30.7 crore, as compared to Rs.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 Rs.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 Rs.1,201 crore from the IPO markets, data from Prime Database shows. In 2013, three firms had raised Rs.1,284 crore.

This article was first published on Livemint.com

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.