Quess Corp Ltd.'s public issue of 1.26 crore shares received an overwhelming response from investors, with the initial public offering (IPO) getting oversubscribed 144 times after the public offer closed on Friday (July 1).
The Thomas Cook subsidiary had come out with the public issue offering equity shares in the price band of Rs. Rs. 301 to 317 per share to raise Rs. 400 crore. The issue had opened on June 29.
The Quess Corp IPO was oversubscribed 144 times, reported CNBC-TV18.
Quess Corp had raised Rs. 180 crore by issuing 5.76 million shares to anchor investors at the upper end of the price band.
Earlier on Friday, Mahangar Gas Ltd. shares debuted on the stock exchanges at a premium of almost 28 percent to the issue price of Rs. 421.
Quess Corp Ltd. is engaged in recruitment, staffing, payroll and compliance management services in India. The company â€” earlier Ikya Human Capital Solutions Limited â€” was acquired by Thomas Cook in May 2013 when the travel and holiday solutions company took a controlling stake.
Quess Corp Ltd. generates about 86 percent of its revenues from India and had earned a net profit of Rs. 89 crore on net sales of Rs. 3,435 crore for the financial year 2015-16.
Thomas Cook (India) holds 69.55 percent stake in the company. Its share price closed at Rs. 219.50 on Friday on the BSE.
Highlights of the company (complied from Angel Broking's note)
QCL is among India's leading integrated business service providers, focused on emerging as the preferred partner for handling end-to-end business functions of its clients.
It has a pan-India presence with 47 offices across 26 cities, as well as operations in North America, the Middle East and South East Asia.
As of Feb. 29, 2016, QCL had employed more than 1.20 lakh employees, including over 3,400 core employees and over 1.17 lakh associate employees, i.e. employees placed with its clients.
The company's top 10 clients accounted for 30.4 percent of its revenue in FY2016.
At the upper end of the price band, the pre-issue P/E works out to 40.6x its FY2016 earnings.
The company's operations can be classified into four key business services - Global Technology Solutions (GTS), People and Services (P&S), Integrated Facility Management (IFM) and Industrial Asset Management (IAM).
The offer price is attractive because the pre-issue P/E works out to 40.6x its FY2016 earnings as against its peer Team Lease, which is trading at 63.1x FY2016 earnings.