Staffing company TeamLease Services Ltd made a strong stock market debut on Friday with its shares soaring as much as 21 per cent after listing.
The shares listed at Rs 860 on the Bombay Stock Exchange and touched a high of Rs 1,032, an increase of 21 per cent from the issue price of Rs 850, and a low of Rs 805.90 in intra-day trading. At 12:50 PM, the shares were trading at Rs 997.55 apiece.
The Rs 423-crore initial public offering (IPO) of TeamLease had received an overwhelming response from investors with the issue getting oversubscribed 65 times earlier this month. The company had priced its shares in a band of Rs 785-850.
The IPO also helped its private equity investors, Gaja Capital and ICICI Venture, make a profitable part-exit.
From the proceeds of the fresh issue, the company plans to use around Rs 80 crore for existing and incremental working capital requirements, Rs 25 crore for acquisitions and other strategic initiatives, and Rs 15 crore for upgrade of IT infrastructure.
TeamLease mainly offers temporary workforce to its clients in bulk on a contract. This allows clients to hire without adding to their direct employee base. This employment and business model is closely associated with sectors like manufacturing, banking, BPO and retail, among others. Temping also encompasses senior-level short-term flexi managers. TeamLease offers permanent staffing services, too.
IDFC Securities Ltd, Credit Suisse Securities (India) Pvt Ltd and ICICI Securities Ltd are the Book Running Lead Managers to the offer.
Click here for more on the company and the IPO and here for valuations.