TeamLease IPO subscribed 89% on Day 2

The initial public offer of staffing firm TeamLease Services was subscribed 89 per cent on the second day of the offer today.
The Rs 423-crore IPO received bids for 25,72,185 shares against the total issue size of 28,92,063 shares, as per the NSE data till 1700 hours.
The retail investor category has been oversubscribed four times, sources said.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 28 per cent while non-institutional investors mopped up four per cent.
TeamLease Services has raised Rs 190 crore through issue of shares to 15 anchor investors, including Goldman Sachs and Merrill Lynch.

The shares were allotted to anchor investors at a price of Rs 850 apiece, the upper end of the price band.

The IPO would close tomorrow and the price band is Rs 785-850 per share. At the upper end, the share sale can fetch Rs 423 crore.
The offer will be made through a fresh issue aggregating up to Rs 150 crore and an offer for sale of up to 32.2 lakh equity shares.
Proceeds from the IPO will be used for acquisitions and other strategic initiatives, upgradation of the existing IT infrastructure, working capital requirements and other general corporate purposes.

IDFC Securities Ltd, Credit Suisse Securities (India) Pvt Ltd and ICICI Securities Ltd are the book running lead managers to the offer.