Fastest follow-on offer: Quess eyes Rs 900 crore via IPP

In the fastest followon public market fund-raising, India's largest business services provider Quess plans to mop up Rs 900 crore, or $140 million, through an institutional placement programme ( IPP) in the next 10 days, people directly aware of the matter said.

Quess, controlled by Prem Watsa's Fairfax through Thomas Cook, had raised Rs 400 crore through an initial public offer ( IPO) exactly a year ago, which was among the top five most oversubscribed public issuances in the past two decades. The share price has risen threefold since the debut last July , giving the Bengaluru-headquartered company about Rs 12,000-crore market value. Quess ended Monday's trade at Rs 951 as against the issue price of Rs 317 one year ago. The public issue was oversubscribed 144 per cent last July . It is likely to eclipse the 14 months ta ken by Manpasand Beverages last year, which is the fastest follow-on capital-raising currently .

IPP is similar to raising funds through qualified institutional placement, though the market regulator has made the pricing requirements less onerous compared to the latter.

Serial entrepreneur Ajit Issac-spearheaded Quess is raising fresh capital -more than double the size of its IPO -to boost inorganic growth. The company has finished investor roadshows and is awaiting shareholder nod at the AGMon Friday to go ahead with the fund-raising. When contacted, Quess declined to comment on market speculation. Besides taking advantage of the soaring market value, the latest fund-raising will also help Quess promoters to move towards the Sebi-mandated minimum 25 per cent float. The promoters hold about 89 per cent in the company at present.