Forbes India 15th Anniversary Special

Staffing firm TeamLease set for market debut

Its proposed IPO includes a fresh issue of shares worth Rs 150 crore and a secondary sale of 3.2 million shares by investors

Published: Jan 29, 2016 03:56:15 PM IST
Updated: Jan 29, 2016 04:24:08 PM IST
Staffing firm TeamLease set for market debut
Image: Gireesh GV for Forbes India
Manish Sabharwal is co-founder and chairman of TeamLease Services

Bengaluru-based TeamLease Services Limited, one of India’s leading providers of human resource services, will hit the capital markets early next week. Founded in 2002 by college friends Manish Sabharwal and Ashok Reddy, TeamLease’s core business is to provide temporary staffing solutions for companies across sectors.

Some of its clients include Microsoft India, LG Electronics, ICICI Lombard, Bata India and Larsen & Toubro. TeamLease will be the first temporary staffing solutions firm to list on the Indian bourses.

The company’s initial public offer (IPO) has two parts: A fresh issue of shares and an offer for sale or secondary sale of 3.21 million shares by existing investors Gaja Capital India Fund - I, Gaja Advisors Private Limited, GPE (India) Ltd, India Advantage Fund S3 - I and HR Offshoring Ventures.

The fresh issue could mop up about Rs 150 crore. The price band for the listing of the company’s equity shares has been fixed from Rs 785 to Rs 850. The Book Lead Managers to the offer are IDFC Securities Limited, Credit Suisse Securities (India) Private Limited and ICICI Securities. The issue opens on February 2 and closes on February 4.

CRISIL Research has assigned a CRISIL IPO grade of ‘4/5’ to the IPO. A recent report from CRISIL Research read, “The grade reflects TeamLease’s established position in the flexi-staffing industry, healthy growth prospects and a diversified clientele, including some large, reputed companies.”