TeamLease Services surges 10% as T Rowe buys 5% stake

NEW DELHI: Shares of TeamLease Services soared over 10 per cent after one of the world’s largest asset management firms bought 5 per cent in listed recruitment and staffing company for about Rs 160 crore.

The Baltimore, Maryland-headquartered investment management firm T Rowe Price, which manages about $970 billion assets, purchased the stake from Mumbai-based mid-market private equity firm Gaja Capital, the first risk capital investor in TeamLease, sources aware of developments told ET.

Following the development, the stock rose 10.40 per cent to hit a high of Rs 2,089 on BSE. Given the stake acquisition amount, the deal values the company at Rs 3,200 crore, while the company was enjoying a market capitalisation of Rs 3,561 crore post the surge.

The Gaja stake in TeamLease has fallen to 8.5 per cent now from 13.5 per cent earlier, the ET report suggested.

The TeamLease IPO was one of the most successful public market debuts last year and saw massive oversubscription, attracting bids of Rs 16,000 crore for Rs 420 crore of shares on offer.