ICICI OneSource, which was today rechristened as Firstsource Solutions, also filed its papers with Sebi for an initial public offering (IPO) of 95.6 million shares. | |
| The IPO is expected before March 2007 and the company plans to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). |
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| The public offering will include a fresh issue of 60 million shares of Rs 10 each, and sale of 35.6 million shares by ICICI Group. The price will be determined through a 100 per cent book-building process. The paid-up capital after the issue will stand at Rs 416 crore and the IPO will comprise 23 per cent of the post-issue paid capital of Firstsource. |
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| Ananda Mukerji, CEO and MD, said the name change "is a step towards creating an independent identity. With both ICICI OneSource and ICICI Bank going global, there was some confusion about the name. The new identity should solve this problem. We chose a name that resonated with what we want to be." |
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| He added the IPO proceeds would be used to retire $10 million (around Rs 45.50 crore) debt out of the total liability of $22 million (a little over Rs 100 crore), funding acquisitions and capital expenditure. The company has earmarked Rs 180 crore for acquisitions in the near future, added CFO, Rajesh Subramaniam. |
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| Post-issue, ICICI Group, which currently holds less than 50 per cent stake, will see its holding drop to 34.2 per cent but will continue to remain the principal stakeholder in the company. ICICI Bank holds 10.66 percent in the company and its stake would come down to 9.13 percent post-IPO. Sequoia, Temasek (holds 25.8 per cent) and Metavante, the other partners, will also offload a part of their stake. Sequoia's stake, post-issue will be around 9 per cent. |
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| Firstsource currently has 9,000 employees and 17 delivery centres in India, US, UK, Argentina and the Philippines. Having acquired five companies in a span of three years since 2001, the company has 61 customers with 15-18 large accounts. Its top five clients contribute 44 per cent to the total revenue (ended 2005-06 with revenues of $124 million - around Rs 570 crore). |
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| For the six months ended in September 2006, the company reported a net profit of Rs 32.12 crore on Rs 343 crore. The revenue is equally distributed across the US and UK geographies which the company terms as its "derisking" strategy. |
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| I-OneSource's call centre business includes out-bound and in-bound tele-sales, cross-sell and up-sell programmes and comprises around 45 per cent of the revenue. |
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| For 2005-06, Nasscom ranked the company fifth after Genpact, WNS, Wipro BPO and HCL BPO services. Mukerji wants to better the score. |
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| And according to a recent Dun & Bradstreet study, Genpact has become the leading ITeS-BPO company with 19,700 employees, followed by WNS, Wipro BPO, HCL Technologies BPO Services and ICICI Onesource. |
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