CIEL HR Services Files DRHP With SEBI For An IPO Of Rs. 335 Cr

For an IPO, CIEL HR Services Limited has submitted a Draft Red Herring Prospectus (DRHP) to SEBI. A fresh issue of equity shares up to Rs. 335 crores and an offer for sale (OFS) by the selling shareholders of up to 4,739,336 equity shares having a face value of Rs. 2 each make up the public offer.

The offer for sale up to 4,739,336 equity shares includes equity shares totalling up to 2,544,181 from Pandiarajan Karuppasamy, up to 629,357 from Hemalatha Rajan, up to 629,357 from Aditya Narayan Mishra, up to 594,540 from Santhosh Kumar Nair, and up to 118,537 from Doraiswamy Rajiv Krishnan. up to 47,391 equity shares from Ganesh S. Padmanabhan; up to 47,391 equity shares from Soby Mathew; up to 47,391 equity shares from Anup Narendran Menon; up to 8,727 equity shares from Mohit Gundecha; up to 8,727 equity shares from Suruchi Wagh; up to 10,778 equity shares from Cavinkare Private Limited; up to 9,358 equity shares from Piyush Jain; up to 8,085 equity shares by Rajan Chellamani Nadar; with Muhil Nesi Vivekanandah, upto 26,188 equity shares by Sambasivan Viswanathan and Vidya Viswanathan and upto 2,591 equity shares by Tamilmani Muthusamy, as per the DRHP.

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 Limited, Ambit Private Limited, and Centrum Capital Limited.

Pandiarajan Karuppasamy, the Executive Director and Chairman of the CIEL HR Group, is the one who promotes CIEL HR. The initial promoters of Ma Foi Management Consultants Private Limited, an HR firm that eventually was acquired by a multinational staffing firm, were Promoter Chairperson Pandiarajan Karuppasamy and Promoter Director Hemalatha Rajan.

In the fiscal year that ended in March 2024, CIEL HR Services had a net profit of Rs 10.85 crore, in comparison with Rs 1,085.73 crore in sales. The firm reported sales of Rs 799.36 crore and a loss of Rs 3.15 crore for the fiscal year 2023. In terms of finances, it declared a consolidated profit of Rs 10.85 crore for fiscal 2024, compared to a loss of Rs 3.2 crore the year before. At the same time, revenue from operations jumped by 35.8% to Rs 1,085.7 crore from Rs 800 crore. Revenue for the June 2024 quarter was Rs 325.2 crore, with a profit of Rs 3.2 crore.

As of June 30, 2024, CIEL HR Services Limited is the sole company in India providing a full range of technology-driven HR solutions that affect every stage of the employee lifecycle throughout the human resource chain (Source: F&S Report). To meet the demands of various industries, CIEL HR Services provides a variety of technological platforms and human resource services. By providing assistance with hiring, staffing, payroll processing, strategic HR guidance, and skill development, human resource services help businesses efficiently acquire, retain, and nurture top personnel.