CIEL HR Services Ltd. filed draft red herring prospectus for raising funds through initial public offering on Tuesday. The public issue is a mix of fresh issue of shares worth Rs 335 crore and offer for sale of 47.39 lakh shares, the document showed.
The offer for sale will see promoters Pandiarajan Karuppasamy, Hemalatha Rajan, Aditya Narayan Mishra, Santhosh Kumar Nair and Doraiswamy Rajiv Krishnan offload around 45.16 lakh shares between them.
The company is also looking for a pre-IPO placement of 20% of the fresh issue, prior to the filing on red herring prospectus. Upon completion of such placement of shares, the amount raised will be reduced from the fresh issue, the DRHP said.
Of the net proceeds from the fresh issue, CIEL HR Services will spend Rs 100 crore towards funding its incremental working capital requirements.
The company will invest Rs 40.73 crore towards increasing its stake in subsidiaries Firstventure Corporation Pvt., Integrum Technologies Pvt., Next Leap Career Solutions Pvt., People Metrics Pvt. and Thomas Assessments Pvt.
The company will invest Rs 55.2 crore from the fresh issue proceeds into subsidiaries CIEL Skills and Careers Pvt., Firstventure Corporation Pvt., Integrum Technologies Pvt., Ma Foi Strategic Consultants Pvt., and Next Leap Career Solutions Pvt.
These investments will be made over the next two financial years, the DRHP showed.
Incorporated in 2010, CIEL HR Services offers human resources solutions across recruitment, staffing, payroll processing, strategic HR advisory, and skill development. It also offers technology solutions for evaluating employee competencies, enhancing learning experiences, managing employee lifecycle, upskilling, ensuring regulatory compliance, and fostering workforce engagement.
CIEL HR Services reported a net profit of Rs 10.85 crore in the fiscal ending March 2024, against revenue of Rs 1,085.73 crore. In the fiscal 2023, the company had posted revenue of Rs 799.36 crore and loss of Rs 3.15 crore. For the first quarter of the current fiscal, the company posted a bottom-line of Rs 3.17 crore, and topline of Rs 325.18 crore.
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