Genpact plans India's largest IPO in US

The country's largest business process outsourcing (BPO) firm Genpact plans to raise $600 million (around Rs 2,500 crore) in an initial public offering (IPO) on the New York Stock Exchange (NYSE). The face value of the offered shares is 1 cent.

It will thus become the largest Indian IPO in the US, following in the footsteps of two other Indian BPOs "" WNS (NYSE) and EXL Services (Nasdaq).

The proceeds from the share sale will be used to repay debt and for general corporate purposes, including potential acquisitions, according to a filing with the US Securities and Exchange Commission.

Genpact will apply to have its common shares listed on the NYSE under the symbol "G". The IPO will be managed by Morgan Stanley, Citigroup Inc. and JPMorgan Chase. 
 

HEADING WEST                                                                (Figures as on Dec. 31 '06)
Name	Revenue	Net Income	IPO Size	Location/Yr
Genpact**	613	39.8	600	NYSE "" 2007
WNS*	295	21.39	255	NYSE "" 2006
EXL Services*	121.77	13.44	72	Nasdaq "" 2004
* ttm -- all figures in $ million     ** proposed offer

General Atlantic and Oak Hill Capital Partners hold 60 per cent of the company's equity, while GE owns the remaining 40 per cent. All the three sareholders are diluting their stake through the proposed IPO, according to the SEC filing.

Genpact ceased to be a wholly-owned subsidiary of GE in December 2004. GE accounted for almost 74 per cent of the company's $613 million (around Rs 2,600 crore ) sales in 2006.

The remaining 26 per cent came from what Genpact refers to as 'global clients'. Genpact employs a little over 28,000 people across its centres in India, China, Hungary, Romania, the Philippines, Mexico and the US.

The company's net income more than doubled last year to $39.8 million (around Rs 170 crore) as sales to customers other than GE almost quadrupled.

Genpact recently received an in-principle clearance from the Ministry of Commerce to set up three Special Economic Zones (SEZs) in Bhopal, Bhubaneswar and Jaipur.

Discussions are in an advanced stage with the three state governments. Genpact President & CEO Pramod Bhasin had then said: "Our growth is encouraging us to plan ahead and partner with state governments to identify expansion sites that will serve the larger Indian BPO/ ITES sector. These new facilities will offer exciting career and growth opportunities to the youth in these states."

Genpact is hiring in excess of 800 new employees a month in India. While hiring for the new facilities has already begun through Genpact's employment offices, the company will offer existing employees from its other centres the option to take a transfer to these facilities.