JOIN USBengaluru-based recuritment consultants, human resource outsourcing and staffing company Teamlease is eyeing acquisitions to strengthen its presence in the country.
“We are looking at smaller staffing companies that can be rolled into a company or vertical plays that can help us with hiring in specific verticals. The discussions are only in initial stages and nothing has been finalised yet,” Teamlease managing director Ashok Reddy told Deccan Herald.
A part of the proceeds (around Rs 25 crore) which will be raised via our initial public offering (IPO) will be earmarked for acquisitions, Reddy added. Teamlease has filed papers with the market regulator Sebi for an initial public offering to raise around Rs 500 crore. The issue will consist of a fresh issue of around Rs 150 crore and an offer for sale by existing investors including ICICI Ventures and Gaja Capital.
Teamlease has acquired two companies earlier, including a generic staffing company and a training company. It has given jobs to over 1.2 million people and got over 95,000 people deputed on the payrolls of their clients.
Some of its competitors include Indian affiliates or India-based operations of global players such as Adecco, Manpower, Randstad Holding, Kelly Services, and Quess Corp.
According to Teamlease, the company’s ability to maintain or increase market share could be limited due to increased competition.
Teamlease currently enjoys margins of around 1.5 per cent. It had revenues of Rs 2,200 crore in FY15, and had recorded a net profit of Rs 32 crore in FY15.
“ We are looking at smaller staffing companies that can be rolled into the company or vertical plays which can help us with hiring in specific verticals.”
Ashok Reddy, Teamlease MD