The Hindu Business Line : Firstsource files for IPO to sell 9.56-cr shares

NEW AVATAR: Mr Ananda Mukerji (left), MD & CEO, Firstsource, with Mr Rajesh Subramaniam, CFO, at a press conference to announce ICICI OneSource changing name to Firstsource and to announce the company's IPO in Mumbai on Thursday. - Paul Noronha

Mumbai , Nov. 23

ICICI OneSource has filed with SEBI for selling 9.56 crore equity shares through an initial public offering. This constitutes 23 per cent of the post issue share capital of the company.

The BPO company has also been rechristened as `Firstsource'.

"With both the ICICI group and ourselves expanding rapidly oversees it is necessary that we establish our distinct identities," Mr Ananda Mukerji, MD & CEO of Firstsource, said at a news conference on Thursday.

"Out of the proceeds of the IPO, the company plans to spend Rs 180 crore on acquisitions and Rs 45 crore on debt repayment, said Mr Rajesh Subramaniam, Chief Financial Officer, Firstsource. The funds will be utilised by March 31, 2008.

Acquisitions are a part of the company's strategy as it believes in getting its domain capabilities expanded, said Mr Raju Venkatraman, President & COO, Firstsource.

The ICICI group will continue to be a significant investor in Firstsource with board representation, said Ms Kalpana Morparia, Joint MD of ICICI Bank.

"ICICI Bank will have one of its nominee directors on the board of Firstsource," she added.

The 9.56-crore equity share issue includes fresh issue of six crore equity shares and 3.56 crore offered for sale by the ICICI group.

The ICICI Bank Group holds about 50 per cent in the company and post IPO, the stake will come down to 34.2 per cent. Metavante Corp, Aranda Investments (Mauritius) Pte Ltd, an affiliate of Singapore-based Temasek Holdings, and Westbridge Capital Partners, which is now managed by Sequoia Capital India, are the other stakeholders in the company.

Firstsource has filed its registration statement and prospectus with SEBI, but it hasn't yet disclosed the amount it plans to raise through the IPO.

"The amount we want to raise through the issue will be determined by the price band," said Mr Ananda Mukherjee, MD & CEO of Firstsource.

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