Indian BPO Firm HOV Services Announces IPO

BPO service provider HOV Services Ltd said on Friday that it will enter the capital market with an IPO of 4,050,000 equity shares to meet capital expenditure and fund acquisitions.

The company, based in India and the US, would offer 4,050,000 equity shares of Rs 10 ($0.22) each through book building process, a statement issued said.

HOV Services has filed its Draft Red Herring prospectus with market regulator SEBI and has appointed DSP Merrill Lynch as the book-running lead manager and JM Morgan Stanley as co-book running lead manager.

Besides using the proceeds for planned capital expenditure and acquisitions, the company will repay loans of its subsidiary.

At least 50 per cent of the issue would be allocated to Qualified Institutional buyers, 15 per cent to non-institutional bidders and 35 per cent to retail investors.

The company’s BPO and international deployment strategies address its customers need for Accounts Receivable Management (ARM), Entreprise Management Tools and Services (EMTS) and Insurance and Tax Services (ITS).