FirstMeridian Business Services Ltd., one of the country’s fastest-growing staffing firms, has filed a prospectus to be listed on the stock exchange. The Rs 800 crore public offer includes Rs 50 crore in fresh issues and Rs 730 crore in equity sales.
In terms of revenue, FirstMeridian Business Services is the country’s third-largest staffing firm in FY21. They provide a variety of staffing services, such as general staffing and related services, global technology solutions, and other HR services. According to data available for March 31, 2022, they have 50 offices in 75 cities and serve 1,212 clients, including Indian and foreign businesses. The net revenues from the new shares will be used to repay and prepay certain market borrowing.
Why should you invest in FirstMeridian Business Services Ltd IPO?
Here are our top reasons.
- They have a vast geographical footprint with 1212 clients, 923 of which are in general staffing and related services, 100 in global technology solution services, and 189 in other HR services.
- The employment firm serves the telecoms, retail, BFSI, and building and infrastructure industries, thus their revenue is diverse.
- FirstMeridian Business Services has completed several significant acquisitions that have aided the company’s organic and inorganic growth and revenue expansion.
FirstMeridian Business Services 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 Us before investing
Strengths
- The HR staffing sector in the country is highly fragmented, with five large companies controlling 12% of the market, resulting in high growth prospects.
- The company leverages technology to offer paperless onboarding using advanced software.
- They have an established track record of organic and inorganic growth.
Risks
- Although fragmented, the staffing industry is highly competitive, impacting the company’s future cash flow.
- The company had recorded losses in the past, experiencing negative cash flow arising from the operation, investing, and financial activities.
- 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.
FirstMeridian Business Services 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:
Q1. What is FirstMeridian Business Services Ltd. IPO?
Ans. 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.
Q2. When will FirstMeridian Business Services Ltd. IPO allotment be available?
Ans. Details not available.
Q3. What will be FirstMeridian Business Services Ltd. IPO lot size?
Ans. Details not available.
Q4. When will FirstMeridian Business Services Ltd. IPO open for subscription?
Ans. Details not available.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When will FirstMeridian Business Services Ltd. list on exchanges?
Ans. It usually takes ten working days from the last day of subscription to list the IPO on the bourses.
Q7. What would be the listing gains on FirstMeridian Business Services Ltd. IPO?
Ans. 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.
Q8. I have finished the application process for FirstMeridian Business Services Ltd. IPO, but the funds are not yet debited. What is the reason?
Ans. 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.
Q9. How to approve the UPI mandate request for FirstMeridian Business Services Ltd. IPO?
Ans. Login to your UPI handle and approve the payment mandate to complete the IPO application process.
Q10. Can I submit more than one application for the public issue of FirstMeridian Business Services Ltd. using one PAN?
Ans. You can submit only one application using one PAN card.
Q11. What is the minimum order quantity for FirstMeridian Business Services Ltd. IPO?
Ans. The minimum size of the application will be one lot.
