FirstMeridian Business Services IPO

FirstMeridian Business Services have risen to become India’s third largest staffing company in terms of revenue for the fiscal year ending March 31, 2021, after only four years in business. FirstMeridian Business Services IPO will hit the stock market in September 2023.

About FirstMeridian Business Services

They offer a variety of services, including general staffing & allied services, such as contract staffing solutions, workforce automation solutions, & trade marketing solutions to meet the enterprise needs of clients in a variety of industries, global technology solutions, such as short & long-term technology contract staffing solutions for customers, and other HR services, such as permanent recruitment, recruitment process outsourcing, & pharmaceutical recruitment.

As of March 31, 2022, they have a pan-India presence with over 50 sourcing & recruitment branch offices in 75 cities and 118,082 Associates deployed at over 3,500 locations.

Their revenue from operations increased by roughly 22.84 percent from 20,584.37 million in 2020 to 21,102.86 million in 2021, up from 20,584.37 million in 2020 and 13,984.41 million from 2018 to 2019.

Sector

The human resource services business in India is an extremely fragmented market, with the top five staffing firms accounting for only 12% of revenue for the fiscal year ending March 31, 2021. (Source: F&S Report).

Given that the hiring sector benefits from economies of scale, FirstMeridian Business Services limited have an edge over regional and smaller companies in the human resource service sector as one of the three leading human resource services platforms with a broad branch network.

Telecommunications, retail, banking, financial services, and insurance, development and infrastructure, information technology and information technology (“IT”) enabled services (“ITES”), e-commerce, production and mechanical, and logistics are just a few of the industries in which FirstMeridian Business Services limited have developed sector-specific functionality.

Client

FirstMeridian Business Services limited had a total of 1,212 clients, with 923 from their general staffing and associated services company, 100 from their global technology solutions business, and 189 from other HR services.

They give Associates to their clients to work in a variety of functional positions, including sales and marketing, customer support, warehouse management, delivery, and factory workers.

Their recruitment team has 446 recruiters as of March 31, 2022 and 414 recruiters as of December 31, 2021, up from 241, 203, and 190 as of March 31, 2021, March 31, 2020, and March 31, 2019, respectively.

Their recruitment staff employs a multi-tiered sourcing strategy that includes centralized sourcing from their corporate headquarters, local sourcing from branch offices, & alternative sourcing.

FirstMeridian Business Services IPO

FirstMeridian Business Services Limited, headquartered in New Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 800 Crore on 11 May 2022.

The offer includes a fresh issue of INR 50 Crore and there is offer for sale (OFS) of INR 750 Crore by the promoters mentioned in the DRHP. They are not looking for a Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	794.61	675.47	–	–
Total Revenue	2,165.08	2,254.46	–	–
Profit After Tax	28.89	(28.47)	–	–

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(4.66)	(4.66)	3
Financial Year 2020	(2.72)	(2.72)	2
Financial Year 2019	(5.34)	(5.34)	1
Weighted Average	(4.13)	(4.13)
31 Dec. 2021	2.96	2.96

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• In a sector dominated by economies of scale, they are India’s third largest staffing firm.
• They do business with a wide range of end-user industries and clientele.
• They’ve had success with both organic and inorganic growth and integration.
• Operational efficiency and stakeholder satisfaction are ensured by their technology skills and streamlined operations.
• Their track record of steady expansion is impressive and well-established.
• Their executive staff is highly qualified, experienced, and entrepreneurial.

FirstMeridian Business Services Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Quess Corp Limited	175.59
2	10	TeamLease Services Limited	77.48

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on May 09, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

FirstMeridian Business Services IPO Details

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	800 Crore
Fresh Issue	50 Crore
Offer for Sale	750 Crore

FirstMeridian Business Services IPO Date

FirstMeridian Business Services Limited IPO opening date is September 2023, and the closing date is September 2023. The FirstMeridian Business Services issue may list in September 2023.

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Basis of Allotment Date	September 2023
Initiation of Refunds	September 2023
Credit of Shares to Demat Account	September 2023
IPO Listing Date	September 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

FirstMeridian Business Services India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of FirstMeridian Business Services IPO.

FirstMeridian Business Services IPO GMP

FirstMeridian Business Services Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

FirstMeridian Business Services Limited IPO Review

FirstMeridian Business Services Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of FirstMeridian Business Services IPO is good or bad.

FirstMeridian Business Services Limited IPO Risk

• The impact of the coronavirus epidemic (COVID-19) on their business, operating results, and financial situation will be determined by future developments, which are unknown and unpredictable.
• FirstMeridian Business Services limited operate in a highly competitive and fragmented business, and they may find it difficult to compete successfully against existing or new competitors, especially in the unorganized section.
• They have a track record of losses and have previously experienced negative cash flows from operating, investing, and financing activities.
• They are subject to severe government regulation, which may limit the services they are permitted to provide.
• FirstMeridian Business Services might not be able to fully realize the anticipated benefits of previous or future acquisitions successfully or within the timeframe they had planned.

Other Threats

1. Failure to attract and keep talented Associates who match FirstMeridian Business Services limited clients’ staffing needs could harm their company prospects, reputation, and financial performance in the future.
2. Their inability to obtain, renew, or retain the statutory and regulatory licences, certificates, and approvals they need to operate their business could have a negative impact on their business, financial position, and operating results.
3. The general staffing and allied services segment’s EBITDA margins are relatively low, despite the fact that this is the business area that generates the majority of their revenue.
4. FirstMeridian Business Services limited may be susceptible to Associate-related claims and losses as a result of the nature of the staffing services sector, which could harm their business and image.

Team

Since its start, they have put technology at the forefront of all of their products, which include workers, clients, Associates, and applicants.

They have a technology team of 50 people as of March 31, 2022, and 44 people as of December 31, 2021, which is in charge of the creation and maintenance of existing and new technological products utilized in their operation.

Their technological tools, such as DigiHire, their recruiting platform, and DigiHR, their internal human resource management software platform, guarantee that they have consistent back-end procedures and systems, as well as a systematic tracking of each of their companies.

Technology has played an important role in simplifying internal procedures and rules across our firms and building an uniform method of working.

FirstMeridian Business Services Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this FirstMeridian Business Services IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

FirstMeridian Business Services Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2023	1
September 2023	2
September 2023	3

FirstMeridian Business Services Limited Management

They have a senior management team with extensive expertise in the recruiting & business services industries. Sudhakar Balakrishnan, their Full-Time Director and Group Chief Executive Officer, has experience in sales, marketing, human resources, strategy, and profit & loss management, and was the previous country director of Adecco India Private Limited. Satish Srinivasan, their Group Chief Financial Officer, has over 25 years of experience in accounting, finance, and risk management.

He was previously the Executive Vice President and Chief Financial Officer at CMS IT Services Private Limited & the Vice President (Business Finance) at Wipro Limited.

Amitabh Sagar, their Group Chief Human Resource Officer, has over 15 years of human resource management expertise & was previously the Chief Human Resource Officer of Poly Medicure Limited.

FirstMeridian Business Services Limited‘ Promoters

• Manpower Solutions Limited

Promoter’s Holding

Pre Issue Share Holding	87.38%
Post Issue Share Holding

FirstMeridian Business Services Limited Prospectus