Hiring firm TeamLease Services Ltd on Monday secured approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO). The firm had filed its draft initial public offering (IPO) papers with the capital markets regulator in September.
The company, backed by private equity funds Gaja Capital and ICICI Venture’s India Advantage Fund (IAF), is looking to raise around Rs450-500 crore through the offer.
TeamLease’s core business is providing staffing solutions. The majority of its business involves providing employees engaged in sales, logistics and customer service functions.
TeamLease has an estimated market share of 5-6%. The business is supported by strong processes and technology, internal processes and a professional management team with long experience in the flexi-staffing business.
In 2011, Gaja Capital and IAF invested Rs25 crore and Rs75 crore in the firm, respectively. In 2009, Gaja had invested Rs.50 crore in the firm.
The firm reported revenue of Rs2,021.8 crore in 2014-15 compared with Rs1,539 crore in the previous year. Net profit was Rs30.7 crore compared with Rs17.8 crore in the previous year.