Chennai-based HR solution provider company – CIEL HR Services has secured SEBI approval to launch its IPO. The company filed DRHP with the regulatory in the month of November and IPO Central initiated a coverage on it. The market regulatory issued the observation letter on 14 February 2025 to launch its IPO.
CIEL HR Services IPO – Details
CIEL HR Services IPO is a mix of a fresh issue of shares worth INR 335 crore and an offer for sale (OFS) of 47,39,336 shares by existing stakeholders. Each share has a face value of INR 2.
CIEL HR Services IPO – Shareholding Structure
Currently, promoters and the promoter group hold 87% of the CIEL’s shares. The key promoters include:
- Kumar Nair
- Pandiarajan Karuppasamy
- Hemalatha Rajan
- Aditya Narayan Mishra
The lead managers for the IPO are:
- Ambit Private Limited
- Centrum Capital
- HDFC Bank
Additionally, the company may opt for a pre-IPO placement of INR 67 crore, which can reduce the size of the fresh issue.
Utilization of IPO Proceeds
Funds raised from the IPO will be allocated toward:
- Acquiring additional shares in subsidiaries, including:
- Firstventure Corporation
- Integrum Technologies
- Next Leap Career Solutions
- People Metrics
- Thomas Assessments
- Investments in HR technology platforms under subsidiaries:
- ProSculpt (CIEL Skills and Careers )
- Courseplay (Firstventure Corporation)
- HfactoR (Integrum Technologies )
- EzyComp (Ma Foi Strategic Consultants)
- Jombay (Next Leap Career Solutions)
- Funding working capital needs
- Pursuing inorganic acquisitions and general corporate purposes
Financial Performance
Revenue and Profit Trends (INR crore)
| Period Ended | Revenue (INR Cr) | Expense (INR Cr) | Profit After Tax (INR Cr) |
|---|---|---|---|
| 2022 | 528.53 | 521.77 | 6.88 |
| 2023 | 800.72 | 803.33 | 3.15 |
| 2024 | 1,088.20 | 1,075.74 | 10.85 |
| June 2024 | 325.97 | 321.94 | 3.17 |
Between FY 2021 and FY 2024, CIEL HR Services achieved a compound annual growth rate (CAGR) of 62%, significantly outpacing the HR industry’s average CAGR of 18.1%.
Key Performance Indicator for FY24
- Earnings Per Share (EPS): INR 2.55 (Basic)
- Return on Net Worth (RoNW): 12.93%
- Net Asset Value (NAV): INR 19.10
Peer Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income (INR Cr.) |
|---|---|---|---|---|---|
| Quess Corp Limited | 18.72 | 36.26 | 9.78 | 191.22 | 19,100.13 |
| TeamLease Services Limited | 67.00 | 41.96 | 14.06 | 475.74 | 9,321.53 |
| Spectrum Talent Management Ltd | 5.30 | 36.79 | 7.91 | 63.48 | 1,016.20 |
Business Overview
CIEL HR Services offers HR solutions with a technology-driven approach. The company provides staffing, recruitment, payroll processing, strategic HR consulting, and skill development services across multiple industries. The company’s proprietary platforms focus on employee assessment, learning management, talent engagement, compliance, and upskilling.
Clientele and Market Reach
From FY 2022 to FY 2024, the company served 4,019 clients, including well-known corporations such as:
- Aditya Birla Group
- Puma Sports India
- Scootsy Logistics
- Niva Bupa Health Insurance Company
Additionally, CIEL HR has expanded its research into emerging sectors such as electric vehicles (EVs), semiconductor manufacturing, and startups.
CIEL HR Services IPO – Selling Shareholders
The offer for sale (OFS) includes shares from the following stakeholders:
| Name | Type | Shares Sold |
|---|---|---|
| Pandiarajan Karuppasamy | Promoter | 2,544,181 |
| Hemalatha Rajan | Promoter | 629,357 |
| Aditya Narayan Mishra | Promoter | 629,357 |
| Santhosh Kumar Nair | Promoter | 594,540 |
| Doraiswamy Rajiv Krishnan | Promoter | 118,537 |
| Cavinkare Private Limited | Other | 10,778 |
| Rajan Chellamani Nadar | Other | 8,085 |
The cost of acquisition per share varies, with some stakeholders having acquired shares for as low as INR 0.85 per share, while others paid up to INR 175.39 per share.
Conclusion
As the CIEL HR Services secures SEBI approval to launch its IPO. The company is planning to launch its IPO soon. India’s HR services industry is growing at a rapid rate. The company’s strong revenue growth, increasing client base, and investments in technology make this IPO a significant opportunity for investors interested in HR technology and staffing services.
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