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TeamLease Rs 423-cr IPO a top draw; subscribed 66 times

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Press Trust of India New Delhi
Last Updated : Feb 04 2016 | 8:58 PM IST
Staffing firm TeamLease Services initial public offer (IPO) received an overwhelming response from investors as the issue was oversubscribed 66 times on the last day of bidding today.
The IPO of TeamLease generated a demand worth about Rs 27,918 crore, as it received bids for 19,09,15,620 shares against the total issue size of 28,92,063, data available with the NSE till 1900 hrs showed.
The robust demand for the TeamLease IPO comes at a time when the BSE benchmark Sensex has fallen by almost 7 per cent or 1,822 points since the start of the year.
The portion set aside for qualified institutional buyers (QIBs) was subscribed 26.97 times and non institutional investor category has been subscribed around 185 times, sources said.
Retail investors pie was subscribed 10.5 times.
TeamLease IPO was subscribed only 89 per cent till yesterday, the second day of the offer, but saw huge investor demand on the last day leading to an over-subscripton of 66.01 times.

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This is the second IPO of 2016 after Precision Camshafts which was subscribed 1.9 times.
TeamLease Services has raised Rs 190 crore through issue of shares to 15 anchor investors, including Goldman Sachs and Merrill Lynch.
The shares were allotted to anchor investors at a price of Rs 850 apiece, the upper end of the band.
The IPO would close today and the price band is Rs 785-850 per share. At the upper end, the share sale can fetch Rs 423 crore.
The offer will be made through a fresh issue aggregating up to Rs 150 crore and an offer for sale of up to 32.2 lakh equity shares.
Proceeds from the IPO will be used for acquisitions and other strategic initiatives, upgradation of the existing IT infrastructure, working capital requirements and other general corporate purposes.
IDFC Securities Ltd, Credit Suisse Securities (India) Pvt Ltd and ICICI Securities Ltd are the book running lead managers to the offer.
Last year, Alkem, Dr Lal, S H Kelkar, VRL Logistics, Power Mech Projects and Syngene International's IPO had received strong response in terms of subscription.
VRL Logistics' IPO was subscribed over 74 times.

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First Published: Feb 04 2016 | 8:58 PM IST

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