CIEL HR Services to Float IPO for ₹450 Crore: The Second HR Firm to Debut
The public offer for CIEL HR Services IPO is expected to comprise a fresh issue of around Rs 350 cr and an offer for sale by earlier shareholders.
IPO enthusiasts, get ready! CIEL HR Services, the leader in the human resources space, is going to file draft papers for its long-awaited initial public offering (IPO) this Friday. This ₹450-crore-gagantic-sized IPO is set to make CIEL the second HR firm after Teamlease Services to hit the market with an IPO.
If you've been following HR solutions companies or are interested in IPOs with strong growth potential, here is everything you need to know about the CIEL HR Services IPO journey and what makes it a promising investment.
About the company: CIEL HR Services
Who is CIEL HR Services?
CIEL HR Services is the largest Integrated HR services provider in India, and they specialize in Employee Workforce Management.
The company established in 2015 offers innovative, tech-driven solutions to businesses across India-from staffing and recruitment to HR consulting.
Here's a glimpse of the company's achievements:
Office network - 92 offices across 43 cities in India
3,958 companies as of June 2024
Revenue crosses ₹1,000 crore in FY24; operating income - ₹1085.7 crore.
Impressive revenue growth at a CAGR of 42.3% from FY19 to FY24.
CIEL IPO Details
About the CIEL HR Service IPO
The IPO will comprise:
- Fresh issue of equity shares aggregating ₹350 crore
- Offer for Sale by Existing Shareholders.
Lead Managers: Ambit, Centrum Capital, and HDFC Bank.
Post the IPO, funds will be utilized to reinforce the market position, fuel growth, and explore opportunities in the space of HR.
Why you should keep an eye on CIEL HR Services?
1. Seasoned professionals promoting the Company
Pandiarajan Karuppasamy, Hemalatha Rajan, Aditya Narayan Mishra, and others with decades of experience in the staffing industry.
2. Outstanding Revenue Performance
PAT ₹10.8 crore in FY24
Diverse revenue streams across industries such as IT, BFSI, manufacturing and retail
The top 20 customers accounted for 52% of revenues in FY24.
3. Growth-Backed Strategy
The strategy of acquiring entities in the tech and consulting space by CIEL has accelerated the growth of the company, but, more importantly, the new labor codes and the formalization of the economy of India further boost the prospects of the company.
What Makes CIEL HR Service IPO Special?
Unlike any other HR company, CIEL is not recruiting just for the sake of it. It offers HR solutions via technology for various industries and clients. As an astute tech HR solution provider, it has carved out a space in the fast-formalizing economy.
Its robust capex plans and adequate cash flows will ensure sustained growth.
Investor Takeaways
If you are investing in this IPO, here's why it can change your game:
High Growth Potential: Revenue growth of 54% in FY23 and 36% in FY24.
Broadening Market: Trends such as a shift towards formal employment and the digitization of HR processes are tailwinds.
CIEL enjoys strong cash and manageable debt, hence financial stability would not be an issue.
Key Dates of CIEL HR Services IPO and Next Steps
CIEL HR Services is to file its DRHP this Friday. Keep an eye on us for the allotment process, listing date, and subscription details.
We at IPO Ji are always updating you with the latest IPOs that will help you in making smart investment decisions. It can be the update on the subscription, GMP trend, or exclusives regarding the IPO; we are just a click away.
So, are you all ready to go through the analysis of CIEL HR Services IPO with the possibility that it could be big news in the market? Do let us know your thoughts!
