IPO Alert! CIEL HR Services gets final observations from Sebi; details

As investors await further developments, here are the key details of the proposed CIEL HR Services IPO, taken from the Draft Red Herring Prospectus (DRHP)

CIEL HR Services IPO: Technology-driven human resources solutions provider, CIEL HR Services, is all set to go public as it has received the final observations to raise funds through an initial public offering (IPO) from the market regulator, the Securities and Exchange Board of India (Sebi). The company had filed its Draft Red Herring Prospectus (DRHP) with the market regulator on November 21, 2024.

 

As investors await further developments, here are the key details of the proposed CIEL HR Services IPO, taken from the DRHP:

 

CIEL HR Services IPO structure  

The Public Offer comprises a fresh issue of equity shares aggregating up to Rs 335 crores and an offer for sale (OFS) of up to 4,739,336 equity shares by the Selling Shareholders, with a face value of Rs 2 per equity share.  The promoters group, including Pandiarajan Karuppasamy, Hemalatha Rajan, Aditya Narayan Mishra, Santhosh Kumar Nair, and Doraiswamy Rajiv Krishnan, are participating in the OFS. Meanwhile, Ganesh S Padmanabhan, Mohit Gundecha, and Muhil Nesi Vivekanandah are among other shareholders selling their stakes via OFS.  The equity shares that will be offered through the DRHP are proposed to be listed on the stock exchanges being BSE, and National Stock Exchange of India (NSE). 

 

 

CIEL HR Services IPO price band, lot size  

CIEL HR Services, in its DRHP, has said that it will decide the Offer Price, Price Band, and the minimum Bid Lot in consultation with the book running lead managers. These details, CIEL HR Services said, "will be advertised at least two working days prior to the Bid/Offer Opening Date and shall be made available to the stock exchanges for uploading on their respective websites." 

 

CIEL HR Services IPO objective  

The company will not receive any proceeds from the OFS. "Each of the Selling Shareholders will be entitled to its respective portion of the proceeds of the Offer for Sale after deducting its proportion of the Offer expenses and relevant taxes thereon," said CIEL HR Services in its DRHP.

 

CIEL HR Services, however, proposes to utilise the Net Proceeds towards the acquisition of additional shareholding in its subsidiaries, investment in its subsidiaries, funding incremental working capital requirements, potential inorganic acquisitions, and general corporate purposes.

 

CIEL HR Services IPO registrar, lead managers

KFin Technologies serves as the registrar for the issue. Ambit, Centrum Capital, and HDFC Bank are the Book Running Lead Managers to the CIEL HR Services IPO.

 

CIEL HR Services financial details  

The company, in its DRHP, has outlined that during FY24, the company's profit attributable to the parent stood at Rs 9.98 crore, compared to a loss of Rs 2.90 crore reported in FY23.

 

The company's revenue rose to Rs 1,085.73 crore in FY24, up from Rs 799.63 crore reported in FY23. On the flip side, the company's expenses also increased to Rs 1,075.74 crore in FY24, up from Rs 803.30 crore reported in FY23.

 

About CIEL HR Services  

CIEL HR Services offers multiple human resource services and technology platforms catering to the needs of a wide range of sectors. The human resource services offered target support in recruitment, staffing, payroll processing, strategic HR advisory, and skill development, thereby enabling organisations to attract, retain, and develop top talent effectively.  The company's business operates on asset-light model which is scalable due to low capital expenditure requirements.