CIEL HR Services Receives Final Observations from SEBI

Technology-driven HR solutions provider CIEL HR Services is gearing up to go public following the receipt of final observations from the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO). The company had initially submitted its Draft Red Herring Prospectus (DRHP) to the market regulator on November 21, 2024.

As investors eagerly await further updates, here are the essential details of the proposed IPO, as outlined in the DRHP.

Structure of CIEL HR Services IPO

The IPO will consist of:

• A fresh issue of equity shares amounting to ₹335 crore.
• An offer for sale (OFS) of up to 4,739,336 equity shares by existing shareholders.
• Each equity share has a face value of ₹2.
   

Promoters participating in the OFS include Pandiarajan Karuppasamy, Hemalatha Rajan, Aditya Narayan Mishra, Santhosh Kumar Nair, and Doraiswamy Rajiv Krishnan. Additionally, Ganesh S Padmanabhan, Mohit Gundecha, and Muhil Nesi Vivekanandah are among other shareholders selling their stakes. Post-issue, the company’s equity shares will be listed on the BSE and NSE.

CIEL HR Services IPO Price Band & Lot Size

The Offer Price, Price Band, and minimum Bid Lot will be determined in coordination with the book-running lead managers. These details will be publicly announced at least two working days before the Bid/Offer opens and will also be uploaded on the stock exchanges' websites.

Objectives of CIEL HR Services IPO

The company will not receive proceeds from the OFS; instead, the selling shareholders will receive their respective portions after deducting applicable expenses and taxes.

However, the company plans to utilize the Net Proceeds for:

• Acquiring additional shareholding in its subsidiaries.
• Investing in its subsidiaries.
• Meeting incremental working capital requirements.
• Potential inorganic acquisitions.
• General corporate purposes.
• IPO Registrar & Lead Managers
   

The IPO registrar is KFin Technologies, while the book-running lead managers include Ambit, Centrum Capital, and HDFC Bank.

Financial Performance of CIEL HR Services

As per its DRHP, CIEL HR Services reported a profit of ₹9.98 crore in FY24, compared to a loss of ₹2.90 crore in FY23. The company’s revenue surged to ₹1,085.73 crore in FY24, up from ₹799.63 crore in FY23. However, expenses also increased from ₹803.30 crore in FY23 to ₹1,075.74 crore in FY24.

About CIEL HR Services

CIEL HR Services specializes in comprehensive human resource solutions and technology-driven platforms catering to various industries. Its services encompass recruitment, staffing, payroll management, strategic HR advisory, and skill development, helping businesses attract, retain, and develop top talent efficiently.

The company follows an asset-light operational model, allowing it to scale effectively while maintaining low capital expenditure.