Upcoming IPO: CIEL HR Services receives Sebi nod for proposed public offer

Human Resource services provider CIEL HR Services, on Monday, said that it has received final observation from markets regulator Securities and Exchange Board of India (SEBI) to raise funds via initial public offering (IPO).

The HR services company had filed draft red herring prospectus (DRHP) last year in November for ₹335 crore IPO.

The upcoming IPO comprises of a fresh issue of equity shares aggregating up to ₹335 crores and an offer for sale (OFS) aggregating up to 4,739,336 equity shares by the Selling Shareholders with face value of ₹2 each equity share.

The company plans to allocate the net proceeds for acquiring additional shares in its subsidiaries, investing in its subsidiaries, financing its growing working capital needs, pursuing unidentified inorganic acquisitions, and covering general corporate expenses.

Ambit Private Limited, Centrum Capital Limited and HDFC Bank Limited are the book running lead managers to the issue.

About the company

CIEL HR Services offer multiple human resource services and technology platforms catering to the needs of a wide range of sectors. The human resource services offered targets support in recruitment, staffing, payroll processing, strategic HR advisory and skill development, thereby enabling organizations to attract, retain and develop top talent effectively.

Complementing these services are the technology platforms, which provides mechanism for evaluating employee competencies, enhancing learning experiences, managing employee lifecycle, upskilling, ensuring regulatory compliance and fostering workforce engagement.

CIEL HR is promoted by Pandiarajan Karuppasamy (Chairman and Executive Director of CIEL HR Group). Promoter Chairperson, Pandiarajan Karuppasamy and Promoter Director, Hemalatha Rajan were the original promoters of Ma Foi Management Consultants Private Limited (“Erstwhile Ma Foi”), an HR company which was subsequently acquired by a global staffing company.

From fiscal 2021 to fiscal 2024, the company's operating revenue experienced a compound annual growth rate (CAGR) of 62%. In comparison, the HR solutions sector recorded an average CAGR of approximately 18.1% during the same period.