TeamLease Services Ltd, the Bengaluru-based manager of human resources services, plans an initial public offering of shares to fund expansion, cashing in on India’s ambition for higher growth and initiatives such as Make in India and Skill India missions.
TeamLease has 1,100 full time employees spread over 8 cities and almost one lakh associate employees that it provides to various companies. The 13-year old company focuses on the three aspects of employment, employability and education.
Of its Rs 150-crore IPO, venture capital funds Gaja Capital and ICICI Venture plan to reduce their holding form 42 per cent to 21 per cent. About 51 per cent of the equity capital is owned by three promoters and about five percent is as employee stock options with almost 300 employees.
The company plans to set aside about Rs25 crores to acquire companies that may provide it complementary services and help increase presence in areas it is not present, Ashok Reddy, managing director said in an interview in Mumbai.
It is setting aside another Rs80 crores for working capital, Rs15 crores to boost information technology systems and other capital expenses and remaining for general corporate purposes. The company provides employment services across industries and profiles.
The number of jobs in the country is increasing across sectors and industries, said Reddy. There is positive sentiment for companies in FMCG, banking and financial services, manufacturing and e-commerce, which has witnessed an exponential growth in jobs.
"India has the potential to become workforce of the world,’’ said Reddy. "Putting India to Work’’ is the vision statement the company has set for itself.
The company is active in training to help improve employability. Nine out of 10 employment in India is in the informal sector and has remained so over the decades. This could change with changes in laws.
