India: Quess Corp IPO subscribed 0.41 times on Day 1

visual from Livemint.

The initial public offering (IPO) of Quess Corp. Ltd, excluding the anchor allotment, was subscribed 41% on day one of the three-day offering. The issue closes on Friday.

As of 5.30pm on Wednesday, the IPO received applications for 2.88 million shares led by institutional category investors. The company has offered to sell 7.09 million shares on offer.

Retail individual investors, whose investments cannot exceed Rs.2 lakh in an IPO, book drew 2.19 times the demand against 1.26 million shares on offer, stock exchange data showed.

The institutional investor category did not garner a single bid, while the non-institutional category comprising high net-worth individuals was subscribed 5% or 0.05 times.

On Tuesday, Quess Corp. raised Rs.180 crore by allowing shares to anchor investors. The firm sold 5.67 million shares to 15 anchor investors at Rs.317 apiece, the upper band of the Rs.310-317 price band for the issue.

Institutions that participated in the anchor book include Fidelity Investments, Kuwait Investment Authority, ICICI Prudential MF, HDFC MF, Nomura, Harvard Management Co., DSP BlackRock, Wasatch, Pictet, and Grandeur Peak, according to the stock exchange data.

The anchor book is that portion of an IPO which bankers allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the IPO launch and is an indicator of institutional investor interest.

Bengaluru-based Quess Corp. plans to raise Rs.400 crore through the sale of new shares.

The proceeds will be utilized towards repayment of debt, capital expenditure as well as working capital requirements, and funding acquisitions and other strategic initiatives.

Quess Corp. is a business services provider in which 69.55% stake is owned by Thomas Cook (India) Ltd, which in turn is owned by Canadian billionaire Prem Watsa’s Fairfax Financial Holdings Ltd (FFHL).

FFHL owns 67.82% stake in Thomas Cook.

Quess Corp. offers business services, including recruitment, temporary staffing, technology staffing, IT products and solutions.

The company reported revenue of Rs.3,442.4 crore in fiscal year 2016 (12 months) compared with Rs.2,572.8 crore in fiscal year 2015 (15 months).

Net profit grew to Rs.88.5 crore in FY16 compared with Rs.67.2 crore for FY15.

Ajit Isaac, chairman and managing director and chief executive, Quess Corp., last week told reporters that strategic acquisitions have helped contribute 20% of the company’s total revenue and it has a track record of successful inorganic growth through such acquisitions.

Isaac highlighted a four-point plan in a media presentation as the way forward for Quess Corp. The company aims at expanding its service portfolio and operations through strategic acquisitions that complement existing operations. It also aims at capitalizing growth in e-commerce in India and pursue other business-to-consumer opportunities as well as improve operating margins, among other things.

Axis Capital Ltd, ICICI Securities Ltd, IIFL Holdings Ltd, and Yes Securities (India) Ltd are financial advisers to Quess Corp’s IPO.

Quess Corp is the 12th company this calendar year to tap primary markets.

Last week, Mahanagar Gas Ltd saw its Rs.1,040 crore IPO get subscribed 64.5 times.

Ten other companies have tapped the capital markets to raise a total of Rs.6,743 crore this year. Last year, 21 companies raised Rs.13,614 crore, according to data from primary market tracker Prime Database.

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.