CIEL HR plans IPO by Q4 FY24, looks to raise Rs 800 cr for expansion

HR services firm is separately seeking to raise Rs 200 cre through private equity investments

CIEL HR Services, which provides workforce and skilling solutions, is considering an Initial Public Offering (IPO) by the fourth quarter of this financial year or by the second quarter of 2024-25, following the Lok Sabha elections. The firm aims to raise around Rs 800 crore.

CIEL HR, which is based in Chennai, is separately in talks with private equity (PE) players to raise nearly Rs 200 crore. PE funds will primarily be used for exploring inorganic growth opportunities, according to K Pandiarajan, executive chairperson and director of Ma Foi Group and CIEL Group,

The IPO’s timeline will depend on the completion of the PE investments.

 

"If we secure the PE funding by the end of this month, then we might go for the IPO by the fourth quarter. Otherwise, it will most likely be in Q2 or Q3 of the next financial year, as the public issue will depend on the election phase. We're aiming to raise around Rs 800 crore," said Pandiarajan. The group is aiming for a revenue of approximately Rs 1,350 crore this financial year, marking a 66 per cent increase from about Rs 815 crore in 2022-23. The company reported a revenue of Rs 512 crore in 2021-22.

The company is planning four acquisitions, including two in the HR tech sector. "We are strongest in the consumer retail segment, where the boom continues. We have started making inroads into the banking and financial services sector, where we expect higher growth. IT is also growing well for us," said Pandiarajan. The company plans to grow by expanding its physical presence.

CIEL HR announced on Thursday the opening of a new office in Sri City 50 km north of Chennai. This expansion aims to bridge talent supply chain gaps for businesses in Sri City by providing innovative HR solutions powered by HR Tech. As India works towards establishing itself as a prominent global manufacturing hub, CIEL HR is committed to creating zonal hubs across various industrial clusters, contributing significantly to talent development and nation-building, according to a company statement.

"In the dynamic landscape of ever-evolving market demands and the constant emergence of new technologies, technology plays an indispensable role in HR Solutions. CIEL’s main focus this year is to develop innovative HR Tech solutions and deepen our penetration in the Indian market by increasing our geographical footprint. Through our zealous pursuit of innovation and expansion, we aspire to make a significant impact on the HR landscape in India," said Aditya Narayan Mishra, managing director and chief executive officer of CIEL HR.