Upcoming IPO: CIEL HR Services files DRHP for IPO with SEBI

Upcoming IPO: CIEL HR Services Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

CIEL HR Services is the sole provider in India that delivers an extensive range of technology-based human resources solutions throughout the complete human resource spectrum, influencing every aspect of the employee lifecycle, as reported by F&S as of June 30, 2024.

The firm is led by Pandiarajan Karuppasamy, who serves as the Chairman and Executive Director of CIEL HR Group. Karuppasamy and Promoter Director Hemalatha Rajan were the original promoters of Ma Foi Management Consultants Private Limited, an HR firm, that was later acquired by a global staffing company.

Issue Details

The public offer includes an offer for sale (OFS) of up to 4,739,336 equity shares by the selling shareholders at a face value of ₹2 apiece, as well as a new issue of equity shares totalling up to ₹335 crore.

The net proceeds will be used by CIEL HR Services Limited for general corporate purposes, funding additional working capital requirements of the company, investing in subsidiaries, acquiring further shareholdings in subsidiaries, and funding unidentified inorganic acquisitions.

The issue's book-running lead managers are HDFC Bank Ltd, Ambit Private Ltd, and Centrum Capital Ltd.

Between fiscal 2021 and fiscal 2024, the company's operating revenue grew at a compound annual growth rate (CAGR) of 62%. The average CAGR for the HR solutions sector from fiscal 2021 to fiscal 2024 was almost 18.1%.

They provided services to 4,019 clients in the fiscal years 2022, 2023, and 2024 as well as the three months that concluded on June 30, 2024. Axis Bank Ltd, Brigade Enterprises Ltd, Blue Star Ltd, Aditya Birla Group, Niva Bupa Health Insurance Company Ltd, Puma Sports India Private Ltd, and Scootsy Logistics Private Ltd (a fully-owned subsidiary of Swiggy Limited) are a few of the company's major clients.

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