TeamLease Services Ltd.’s initial public offering, which had made a slow start first two days, was oversubscribed sixty five times on the final day, the second-highest in eight years on India’s markets.
High net-worth individuals joined institutional investors and corporate investors to buy stakes in the Bangalore-based staffing company.
Existing investors Gaja Capital and ICICI Venture, who had put in $27.8 million in the past, are selling part of their stake – 1.5 million shares – as part of the offering. They would make about Rs 274 crore from the issue.
The record for the most over-subscribed IPO is that of Future Capital Ltd., which was over-subscribed 132 times in January 2008, just before the bull run started to fade. The company was later sold by Future Group to private equity firm Warburg Pincus and was renamed Capital First.
Corporate investors and HNIs showed a lot of interest, oversubscribing by 184 times, while institutional investors oversubscribed 26 times. Retail investors had led buying on first two days and that part was oversubscribed 10 times.
This is the second IPO of 2016, after that of Precision Camshafts. TeamLease stands to raise more than Rs 420 crore at the upper band of its price range of Rs 785-850.