Brief

OneSource becomes Firstsource

ICICI OneSource recently renamed itself as Firstsource Solutions. The company has also filed the draft red herring prospectus with the Securities and Exchange Board of India (SEBI) as a precursor to its planned listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Ananda Mukerji, MD & CEO, Firstsource said, “The re-branding to Firstsource is a natural evolutionary step for the company. With both the ICICI Group and us expanding rapidly overseas it is necessary that we establish distinct identities.”

When ICICI OneSource was set up in 2002, the ICICI Group was its only shareholder. Today investors such as Metavante Corporation (12.36 percent), Aranda Investments (Mauritius), an affiliate of Temasek Holdings (25.8 percent), and WestBridge Capital Partners, now managed by Sequoia Capital (10.94 percent) hold significant stakes in the company.

While the ICICI Group continues to be the single largest shareholder group, its holding in the company today is 49.96 percent (ICICI Bank—10.66 percent and ICICI Strategic Investment Fund—39.30 percent). Post this sale; ICICI Group’s shareholding will be diluted to 39.96 percent (ICICI Bank—9.13 percent and ICICI Strategic Bank—25.07 percent).

Rajesh Subramaniam, CFO, Firstsource stated, “Our company has a debt of about Rs 45 crore and we are planning to allot Rs 180 crore for future acquisitions.”

Ananda Mukerji, MD & CEO, Firstsource, (centre) announcing the change as his other team members look on

Mukerji explained, “Firstsource plans a public issue of 95.6 million equity shares of Rs 10 each at a price to be determined by the 100 percent book-building process, including a fresh issue of 60 million equity shares and 35.6 million equity shares being offered for sale by the ICICI Group. The IPO would constitute 23 percent of the post-IPO capital of Firstsource.”

K V Kamath, MD & CEO, ICICI Bank said, “Firstsource has a strong and experienced management team and I feel confident that it will continue to record growth as it builds on the foundation that we have laid. The ICICI Group will continue to be a significant investor in the company with board representation.”

Firstsource has over the last four years grown in scale and capabilities, with a CAGR of 74.4 percent in revenues over the past two fiscal years and has built a customer base of over 60 customers including 13 Fortune 500 and FTSE 100 companies. The company provides customised business process transformation to companies in the banking & financial services (about 60 percent), telecom & media (30 percent) and healthcare sectors (10 percent). It has over 9,000 employees and 17 delivery centres across India, the US, the UK and Argentina and a centre under development in Philippines.