The Hindu Business Line : Genpact raises $494 m from IPO priced at $14; trading on NYSE

“This is a big day for the company. We have successfully completed a public offering in tough market conditions,” said President and CEO Mr Pramod Bhasin.

Of the total 35,294,118 shares sold in the offering, half were sold by the company, while the rest were sold by shareholders including General Atlantic, Oak Hill Capital Partners and General Electric Company.

Genpact has granted to the underwriters an option to purchase up to an additional 5,294,118 shares to cover over-allotments.

It will use net proceeds to repay debt, for working capital and corporate purposes, including acquisitions.

Asked if raising $494 million (against the initial expectation of over $560 million) could affect the planned utilisation of the proceeds, Mr Bhasin exuded confidence that it would not impact company’s plans.

“Our funds are sufficient and if at any point we need more resources, we can raise more money,” he said, adding that the forward PE worked out to almost 24.

The IPO follows successful stock market debuts by rivals such as WNS Holdings and Exlservice Holdings.

A Mumbai market analyst told that Business Line that at $14, the shares seemed “overpriced. In case of Firstsource, the price will be 20-25 times the one-year forward earnings, while the same in case of Genpact appears to be f ar higher than 24. In fact, it seems to be closer to 50.”

Genpact, which has a debt of $190 million on its balance-sheet, said that it would utilise part of the IPO proceeds to service debt.

“We will pay the short-term debt and may choose to hold longer term debt,” Mr Bhasin said.

He refused to comment on the market buzz that the company was eyeing Citigroup’s captive BPO, but pointed out that the company continued to look for good acquisitions.

Post-IPO, GE’s stake would come down to 23 per cent from 28 per cent, while the combined holding of General Atlantic and Oak Hill Capital Partners would reduce to 52 per cent from 60 per cent earlier.

More Stories on : IPOs | Outsourcing | Overseas Borrowings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Meet on educating women investors

Mutual funds asset base swells by Rs 86,180 cr in July

Fresh allocations to short-term plans mooted

Reliance Interval fund declares dividend

PE investment buzz on Gokaldas Exports

Volatile movement

ChrysCapital sets up new fund at $1.25 b

SEBI against companies giving quarterly guidance

Genpact raises $494 m from IPO priced at $14; trading on NYSE