Staffing firm Ciel HR Services aims to go public by filing draft papers with SEBI to raise funds through an initial public offer. It consists of a fresh issue of shares worth Rs 335 crore and an OFS of 47.39 lakh shares by existing shareholders, including promoters.
Technology-driven HR solutions provider Ciel HR Services operates an asset-light model with low capital expenditure. The company has also enhanced its portfolio by acquiring businesses such as Jombay, Aargee Staffing Services, and Courseplay since FY22. Recently, it acquired a 51% stake in People Metrics and Thomas Assessments, making them its subsidiaries.
Key Details of the IPO:
- Fresh Issue Size: Rs 335 crore.
- Use of Proceeds:
- Rs 40.7 crore for increasing stake in subsidiaries.
- Rs 55.2 crore for investments in subsidiaries.
- Rs 100 crore for working capital needs.
- Remaining for inorganic acquisitions and general purposes.
- Promoters Aditya Narayan Mishra, Santhosh Kumar Nair, and Doraiswamy Rajiv Krishnan currently hold an 87.02% stake in the company, while the public shareholding stands at 11.04%.
Financial Highlights:
- FY24 Profit: Rs 10.85 crore, a sharp turnaround from a Rs 3.2-crore loss in FY23.
- Revenue Growth: 35.8% increase to Rs 1,085.7 crore in FY24.
- June 2024 Quarter Profit: Rs 3.2 crore on a revenue of Rs 325.2 crore.
Competitive Landscape:
Ciel HR competes with Quess Corp, TeamLease Services, and Spectrum Talent Management in the HR solutions industry, which has grown at a CAGR of 18.1% between FY21 and FY24.
This IPO will enable Ciel HR Services to expand its footprint and bolster its financial stability as it taps into the growing HR solutions market in India.
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Source: Moneycontrol
News Desk
