Bangalore-based staffing company TeamLease Services Pvt Ltd is gunning for a stock market listing. According to company chairman Manish Sabharwal, TeamLease aims to raise INR500 crore through the maiden public issue, although no paperwork has been filed with market regulator SEBI.
“We have not filed papers yet, but will do so soon,” the executive was quoted as saying in the Mint business daily.
Earlier, some reports falsely indicated that the company has filed its draft red herring prospectus (DRHP) for the IPO with SEBI. However, the staffing and training company is not very far from filing paperwork. Rituparna Chakaraborty, TeamLease Services’s co-founder and senior vice president, has indicated that details about the IPO will be available on the company’s website in maximum 10 days.
The Bangalore-based company claims to have placed 15 lakh employees to more than 2,500 clients across the country in its history. Started in 2002, the company has grown its network to eight regional offices now. Although it has roots in temporary staffing which continues to a big revenue driver, TeamLease has diversified into permanent recruitment, payroll processing, and learning services.
Red Hot IPO market
These management comments come at a time when several companies have approached SEBI with their plans to raise funds through primary market. Under fire for slow processing, market regulator SEBI has been prompt this year in giving approvals to companies. In the first six months of 2015, SEBI has issued observations to 21 companies to bring IPOs, taking 97 days on average to process these applications. This contrasts with just 5 approvals in the same timeframe of 2014. Ironically, SEBI took 248.8 days on average to approve IPO applications.
Precision Camshafts, Navkar Corporation, SSIPL Retails, AGS Transact Technologies, Dilip Buildcon, Shree Shubham Logistics, Amar Ujala Publications, Prabhat Dairy, Syngene International, S H Kelkar, and Catholic Syrian Bank are some of the companies which have received SEBI approvals in recent months.
SEBI’s efficient application management coincides with its efforts to increase retail participation in IPOs. The regulator issued a raft of reforms last month which will see the number of days for listing being reduced to six from current 12 days. Starting 1 January 2016, IPO applications will also be mandatorily cheque free.