Genpact stumbles & recovers on NYSE
“We are the largest BPO in the country, hence we were definitely looking for a premium,” exclaims Pramod Bhasin, Head, GenPact India, with respect to the listing of the company on NASDAQ. But when the winds of misfortune strike, even such impeccable laurels aren’t enough to rest on. When Genpact went public on August 2, its plans lacked one critical aspect - timing. With a global equity sell off happening from Washington to Wellington, Gen Genpact could only manage to sell shares at $14, against a band of $16-$18 and raised close to $500 million. Genpact is the third BPO company to list on an overseas exchange after WNS (NSE) & EXL (NASDAQ). WNS listed at $20 per share & raised $224 million, while EXL shares were priced at $13.5 and raised $67.5 million. “An international listing helps the company with some very obvious benefits such as more liquidity and diversifications of shareholder base,” says Pankaj Karna, Partner & Head, Grant Thornton, India. So, was Genpact caught in the bad weather or was Genpact really overpriced? Perhaps, both. But even then, despite a lukewarm response, Genpact has had a decent run in the secondary market, as the stock ended at $16.75 on day one. Well, tough times seldom last, they say!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
“We are the largest BPO in the country, hence we were definitely looking for a premium,” exclaims Pramod Bhasin, Head, GenPact India, with respect to the listing of the company on NASDAQ. But when the winds of misfortune strike, even such impeccable laurels aren’t enough to rest on. When Genpact went public on August 2, its plans lacked one critical aspect - timing. With a global equity sell off happening from Washington to Wellington, Gen Genpact could only manage to sell shares at $14, against a band of $16-$18 and raised close to $500 million. Genpact is the third BPO company to list on an overseas exchange after WNS (NSE) & EXL (NASDAQ). WNS listed at $20 per share & raised $224 million, while EXL shares were priced at $13.5 and raised $67.5 million. “An international listing helps the company with some very obvious benefits such as more liquidity and diversifications of shareholder base,” says Pankaj Karna, Partner & Head, Grant Thornton, India. So, was Genpact caught in the bad weather or was Genpact really overpriced? Perhaps, both. But even then, despite a lukewarm response, Genpact has had a decent run in the secondary market, as the stock ended at $16.75 on day one. Well, tough times seldom last, they say!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)
