IPO Dates
Important dates with respect to IPO allotment and listing
IPO Open Date
To be announced
About Company
One of the country’s fastest-growing staffing companies, FirstMeridian Business Services Ltd., has filed a prospectus to get listed on the stock exchange. The public offer of Rs 800 crore includes Rs 50 crore in new issues and Rs 730 crore in an offer for sale of equities.
FirstMeridian Business Services is the country’s third-largest staffing company in terms of revenue in FY21. They are involved in offering a wide range of staffing services, including general staffing and allied service, global technology solutions, and other HR services.
They have 50 offices in 75 cities, catering to 1,212 clients, including Indian and global clients, as per data available for March 31, 2022.
FirstMeridian Business Services Ltd.Objective
- The net proceeds from the new shares will be utilised in repayment and prepayment of certain market borrowing.
Why should you invest in FirstMeridian Business Services Ltd.IPO?
Here are our top reasons.
- They have a large geographical presence with 1212 clients, of which 923 are from the general staffing and allied services, 100 from global technology solution services and 189 from other HR services.
- The staffing company caters to telecommunications, retail, BFSI and construction and infrastructure industries, meaning their revenue doesn’t depend on a single source.
- FirstMeridian Business Services has made several strategic acquisitions that helped in the organic and inorganic growth of the company and expanded its revenue.
IPO Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue From Operation | 21,102 | 20,584 | 13,984 |
| EBITDA | 394.14 | 355.02 | 98.18 |
| EBITDA Margin (%) | 1.9 | 2.1 | 0.6 |
| Profit After Tax | NA | NA | NA |
| EPS | NA | NA | NA |
| ROE | NA | NA | NA |
Know before investing
Strengths
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The HR staffing sector in the country is highly fragmented, with five large companies controlling 12% of the market, resulting in high growth prospects.
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The company leverages technology to offer paperless onboarding using advanced software.
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They have an established track record of organic and inorganic growth.
Risks
3-
Although fragmented, the staffing industry is highly competitive, impacting the company’s future cash flow.
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The company had recorded losses in the past, experiencing negative cash flow arising from the operation, investing, and financial activities.
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Investors applying for the IPO must understand that the business is subject to extensive government regulations, which might impact the company’s ability to provide certain services.
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Peer Comparison
| Company Name | Total Income (in Rs million) | P/E | EPS |
|---|---|---|---|
| FirstMeridian Business Services Ltd. | 21,241.76 | NA | 4.66 |
| Quess Corp Ltd. | 108,820.00 | 175.59 | 3.87 |
| Team Lease Services Ltd. | 49,162.00 | 77.48 | 45.33 |
FirstMeridian Business Services Ltd IPO FAQs
FirstMeridian Business Services Limited IPO offer of Rs 800 crore includes Rs 50 crore in new issues and Rs 730 crore in offer for sale of equities.
Details not available.
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Retail investors can apply for a minimum of one lot.
It usually takes ten working days from the last day of subscription to list the IPO on the bourses.
Angel One customers can log in to their accounts to check FirstMeridian Business Services Ltd. IPO allotment status.
When checking the allotment status, keep your application, DP ID, and PAN number ready.
Listing gain is the difference between the IPO’s opening and offer prices.
The listing gain results from changing investors’ interests, global parameters, and short vs long-term outlooks.
The bank initially blocks the amount you bid for an IPO. It will debit the amount when the shares get allotted or unblock it after the UPI mandate expiry date.
Login to your UPI handle and approve the payment mandate to complete the IPO application process.
You can submit only one application using one PAN card.
The minimum size of the application will be one lot.
