Quess Corp files papers for Rs 4,000 million IPO

MUMBAI, February 03, 2016:  Bengaluru based Quess Corp Limited (“Quess Corp” or “Company”), promoted by Ajit Isaac and Thomas Cook (India) Limited (TCIL) has filed its Draft Red Herring Prospectus (DRHP) with SEBI for raising Rs 4,000 million through an IPO of its equity shares (“Issue”). This is intended as a full primary equity issuance, with all of the money raised being invested in the company. None of the promoters are divesting their stakes as part of the IPO.

Quess Corp, one of India’s leading integrated business services providers*, offers comprehensive solutions to its clients including recruitment, temporary staffing, technology staffing, IT products and solutions, skill development, payroll, compliance management, integrated facility management and industrial asset management services.

The Company closed the 6 months ending September 30, 2015 with Revenue from operations amounting to Rs 15,321.12 million, compared to Rs 2,749.28 million in FY11. The Company’s Net Profit After Tax for 6 months ending September 30, 2015 was Rs 348.19 million compared to Rs 17.36 million in FY11.

The Company has an established track record of successful inorganic growth through strategic acquisitions to supplement its key business verticals of People & Services, Global Technology Solutions, Integrated Facility Management and Industrial Asset Management. It is the largest IT staff augmentation provider and one of the largest general staffing companies in India*. In addition, it is among the leading industrial asset management service providers and among the largest integrated facility management service providers in India*. As of September 30, 2015, the Company serviced more than 1,300 clients. These included several marquee names including more than 35 companies ranked in the 2015 Fortune Global 500 list (as of November 30, 2015).

The Company’s diversified service offerings across various industries and geographies ensuring diversified revenue streams, stable cash flows and reduced vulnerability to economic cycles and geography-specific risks as well as reduced dependence on any set of significant clients.

The Company has a pan-India presence with 43 offices across 24 cities, and its global foot print covers North America, the Middle East and South East Asia. As of November 30, 2015, Quess Corp had more than 118,000 employees, including over 3,000 Core Employees and over 115,000 Associate Employees.

Axis Capital Limited, ICICI Securities Limited, IIFL Holdings Limited and YES Securities (India) Limited are acting as Book Running Lead Managers to the issue.

The Company intends to use the IPO proceeds towards incremental working capital, acquisitions and other strategic initiatives, capex and towards debt repayment, apart from general corporate purposes.

* Source: “Assessment of Outsourced Services Market in India, Frost & Sullivan, January 2016