TeamLease fixes IPO price band at Rs 785-850, eyes raising Rs 400-500 crore

MUMBAI: TeamLease Services has fixed Rs 785-850 per share as the price band for its initial public offer (IPO) which will hit the capital market on February 2.

The staffing company on Monday formally announced its initial public offer via which the company aims to raise Rs 400-500 crore.

The company had filed its draft papers with the capital markets regulator the Securities and Exchange Board of India (Sebi). It aims to offload about 20% stake. The stake will be sold by its shareholders Gaja Capital and ICICI Ventures. Both will, however, remain invested in the company.

The proceeds of the IPO will be spent on “acquisitions and other strategic initiatives” as well as “upgradation of the existing IT infrastructure” the company said. “The balance proceeds will be used in general corporate purpose,” it added.

A total of 10,000 shares have been reserved for the company’s employees, according to the draft red herring prospectus. TeamLease has over 1,200 employees. It has staffed over 1.2 million people so far including in companies such as Vodafone, Dupont, Maruti, Renault and Nissan.

TeamLease Services, which was established in 2002 with four offices, 20 clients and 40 employees, is now India’s largest people supply chain company with eight regional offices.