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Genpact lowers overseas IPO price

Saturday, August 4, 2007

It was supposed to be India's flagship IPO overseas. But the US market volatility is getting to Genpact - India's largest BPO. Genpact priced its IPO lower than its offer price band and will raise less cash than it wanted to earlier.

The volatility in the US markets seems to have affected the listing of India's largest BPO firm - Genpact. The BPO major priced its IPO at USD 14 a share, lower than its initial price band of USD 16-18 a share. Its peers WNS and EXL are valued at 28.5 times and 25.5 times of their current earnings. WNS and EXL priced their IPOs at USD 20 a share and USD 12 a share respectively.

Genpact says the the price was scaled down due to the current volatility in the US markets. Genpact will now raise about USD 494 million, lower than the USD 631 million it wanted to raise earlier. The BPO wants to use the proceeds to repay debts and pursue acquisitions, one of which could be Citigroup's BPO in India. Genpact says it listed in the US for better visibility in the international financial markets.

Posted by FR at 9:24 PM  

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