TeamLease has over 1 lakh associate employees but reserved only 10000 shares for employees. Is there any restriction on % allocation for employees or it is done deliberately.
All employee may not be eligible for IPO and that may be the reason... or since it is HR firm they may have opt complicated structure which will not allow all employee.
They are not employee''s, they are just workers doing temporary job for other many companies .......i doubt they even getting epf or any pension scheme too.....they just getting fixed monthly income.....forget stocks option....
I have a different take here...The company is an HR company...one of their services is HR...in my stint in a past MNC.....all the lower level employees were on teamlease payroll...so technically these outsourced employees working with us were on teamlease payroll and their employees ...and this inflated count of 1 Lakh employees takes into consideration all those employees as well. By employee quota Im sure there will have restrictions to outsourced employees like this to procure the shares.
There is a difference between associate employees & direct employees. As per my knowledge one can allot shares to direct employees. I may be wrong.
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February 3, 2016 4:41:56 PM
Top Contributor (300+ Posts, 300+ Likes)
Old rue used to be up to 55 to employees. This may be lesser for companies without 3 years profit record. It is seen that, even in the best run companies many times employee portion is not fully subscribed as employees who see both positive and negative in their working life tend to over weigh negatives.
According to NSE, the subscription details are as below:
According to this, QIB is 0.18 times now itself. So, I expect it will become 10x by tomorrow. This looks like a better IPO compared to Precision cam shafts in the QIB SUBSCRIPTION POINT OF VIEW.
Bid Details for TEAMLEASE as on 03-Feb-2016 15:50:32 IST Sr. No Category No of Shares offered/Reserved No of shares bid for No of times of total meant for the category 1 Qualified Institutional Buyers(QIBs) 16,01,923 2,95,005 0.18 1(a) Foreign Institutional Investors(FIIs) 2,95,005 1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) 0 1(c) Mutual funds 0 1(d) Others 0 2 Non Institutional Investors 7,68,084 975 0.00 2(a) Corporates 480 2(b) Individuals(Other than RIIs) 240 2(c) others 255 3 Retail Individual Investors(RIIs) 5,12,056 4,46,475 0.87 3(a) Cut Off 3,49,920 3(b) Price bids 96,555 4 Employees 10,000 60 0.01 4(a) Cut Off 45 4(b) Price Bids 15 Total 28,92,063 7,42,515 0.26