Moneycontrol Bureau
The Rs 400-crore initial public offer of Quess Corp, the subsidiary of Thomas Cook, has received overwhelming response from investors. The issue has oversubscribed 144.5 times on Friday, the last day of subscription.
The issue, which opened on June 29, has received bids for more than 102.5 crore equity shares against IPO size of 70.96 lakh shares (excluding anchor investors' portion), as per data available on the exchange.Non-institutional investors' portion oversubscribed a whopping 392.21 times followed by qualified institutional investors with 59.03 times and retail with 34.08 times.
The staffing firm already raised Rs 180 crore from anchor investors at higher end of price band of Rs 310-317 per share.
The IPO comprises of fresh issue of shares. Quess Corp aims to use proceeds of funds raised towards incremental working capital, acquisitions and other strategic initiatives, debt repayment and other general corporate purposes.
The Bengaluru-based HR solutions provider is raising funds to repay debt (Rs 50 crore), funding capex for itself & its subsidiary MFXchange US (Rs 72 crore), funding incremental working capital requirement (Rs 158 crore), acquisitions & other strategic initiatives (Rs 80 crore).
Promoted by Ajit Isaac and travel company Thomas Cook (India), the company was set up in 2007 which offers comprehensive solutions, including recruitment, temporary and technology staffing, and IT products and solutions, among others.Currently Thomas Cook holds around 70 percent equity stake in Quess. Post issue, its shareholding will be reduced to 62.7-62.8 percent.
Thomas Cook acquired 74 percent stake in the HR solutions provider for Rs 256 crore in February 2013 when the company was valued at Rs 346 crore.
Quess has a pan-India presence with 43 offices across 24 cities, and its global foot print covers North America, the Middle East and South East Asia.
Shares of Quess Corp are proposed to be listed on the NSE and BSE.
Axis Capital, ICICI Securities, IIFL Holdings and YES Securities (India) are book running lead managers to the issue. Link Intime India is a registrar to the issue.Posted by Sunil Shankar Matkar
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