Teamlease IPO subscribed 0.17 times on first day

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Mumbai | Published: February 3, 2016 1:11:04 AM

The initial public offering (IPO) of Teamlease Services was subscribed 0.17 times on the first day of the three-day public offering.

The initial public offering (IPO) of Teamlease Services was subscribed 0.17 times on the first day of the three-day public offering.

Although no bids were received from qualified institutional buyers (QIBs) and high net worth individuals (HNIs), the retail book was subscribed 0.98 times. Retail investors bid for 5.02 lakh shares against 5.12 lakh shares reserved for the category.

The company raised Rs 190 crore by allotting shares to anchor investors on Monday. Teamlease allotted shares to 15 anchor investors including Goldman Sachs and Merrill Lynch. The allotment was done at a price of Rs 850 per share.

The price band for the IPO has been fixed at Rs 785-850 apiece. At the upper price band, the company would raise close to Rs 423 crore through the IPO. The total issue comprises a fresh issue worth Rs 150 crore and an offer for sale of up to 32.2 lakh equity shares.

IDFC Securities, Credit Suisse Securities and ICICI Securities are the Book Running Lead Managers to the issue.

The company plans to use the IPO proceeds for acquisitions and other strategic initiatives, upgrading the existing IT infrastructure, working capital requirements and other general corporate purposes.

The primary markets continue to remain positive despite volatility in secondary markets. During the calendar year 2015, when benchmark indices lost close to 6%, 21 companies raised more than Rs 14,000 crore from the primary markets.

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