Following the fantastic listing of Narayana Hrudayalaya, India’s IPO market is going to see some more action as cancer care specialist Health Care Global (HCG) and temporary staffing specialist TeamLease Services gear up to bring their public issues. These upcoming issues aim to raise a combined sum of INR1,100 crore. Details in this regard are still scarce but sources close to the developments told IPO Central that these IPOs may hit the markets as soon as 15 January.
Health Care Global is looking to raise INR650 crore through the IPO which will offer an exit route to its existing investors. According to the draft prospectus, the IPO of the Bangalore-based cancer specialist will involve sale of 31.1 million shares, or 36.83% of the total post-issue shares in the company. While the company is aiming for INR235 crore by selling 1.16 crore shares, existing investors plan to offload 1.95 crore shares.
Included among shareholders exiting through the IPO are several doctors, while PremjiInvest’s investment vehicle PIOF and India Build-Out Fund will be among the biggest parties selling their shares. Azim Premji’s private equity fund intends to sell 76.9 lakh shares while India Build-Out Fund will be selling 61 million shares. Both the big investors will halve their shareholding in the company.
TeamLease Services is also an important IPO for investors. The staffing company has impressed us with a consistent profitability record and going by the experiences of last year, it looks a winner. The company plans to raise anywhere from INR450 crore to INR500 crore through a combination of issue of fresh shares and offer for sale (OFS) by existing investors.
The company will receive INR150 crore from the sale of new shares while private equity investors including Gaja Capital and India Advantage Fund plan to sell 32.19 lakh shares. Manish Sabharwal-promoted TeamLease started as a temporary staff player but has diversified into permanent recruitment, payroll processing, and learning services in recent years.