TeamLease expects to raise Rs 420 crore in public offer

Temp staff provider TeamLease Services Ltd plans to raise around Rs 420 crore in a public offer that opens on February 2, allowing its investors Gaja Advisors and ICICI Ventures to partially exit the firm, besides raise capital for potential acquisitions and technology investments.

"Primarily if you look at staffing industry it is dominated by 10-12 large players, there is no middle player and lot of small specialised companies. They are good acquisition targets with niche skills and verticals," said Ashok Reddy, chief executive of TeamLease.

Gaja Advisors and ICICI Ventures, who combined hold 41.6 per cent stake in TeamLease will sell around half of their holdings in the public offer. In 2011, both venture firms invested Rs 100 crore in the company.

With around Rs 150 crore it expects to raise for itself, TeamLease plans to use part of the money to fund technology investments partly for working capital to pay statutory duties and acquisitions.

As on September, TeamLease employed around 1,05,000 employees who were deployed in 1,200 companies across 5,500 locations in India.