Bangalore-based staffing and facility management firm Quess Corporation has inched closer to its INR700 crore initial public offering (IPO) with the appointment of three banks. According to a report, the company – owned by Thomas Cook – has retained IIFL Capital, ICICI Securities Ltd and Axis Capital to manage its maiden public issue. Quess Corporation was earlier known as IKYA Human Solutions.
Citing two people with knowledge of the matter, the report added that IPO proceeds will be used to fund organic and acquisition-led growth. Apart from the existing businesses, Quess Corporation has set sights on new business areas where it plans to buy out some companies. On its website, the company claims to have registered a compounded annual growth rate (CAGR) of 88% in its revenues over the last 5 years.
Quess Corp has been growing rapidly over the last few years and they are very aggressive when it comes to acquiring companies to add new business lines. They have acquired five companies in the last one year
– A source with direct knowledge of the matter
IKYA was rebranded as Quess Corporation earlier this year following an acquisition of the company by Fairfax-controlled Thomas Cook in 2013. IKYA was established by serial entrepreneur Ajit Isaac, who has decades of experience in the staffing business. Isaac earlier established and sold PeopleOne Consulting to staffing major Adecco in 2004.
When contacted by Mint, Ajit Isaac confirmed Quess Corporation’s IPO plans but declined to offer more details.
Interestingly, Quess Corporation’ staffing business competitor TeamLease is also planning to bring its IPO. TeamLease is believed to be close to file draft red herring prospectus (DRHP) with market regulator SEBI this month.
India’s Red Hot IPO market
The report comes at a time when several companies have approached SEBI with their plans to raise funds through primary market. Under fire for slow processing, market regulator SEBI has been prompt this year in giving approvals to companies. In the first six months of 2015, SEBI has issued observations to 21 companies to bring IPOs, taking 97 days on average to process these applications. This contrasts with just 5 approvals in the same timeframe of 2014. Ironically, SEBI took 248.8 days on average to approve IPO applications.