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.
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