FirstMeridian IPO

About FirstMeridian Business Services Limited IPO

FirstMeridian Business Services Limited IPO is an IPO of ₹740 crores. It consists of an offer for sale aggregating up to ₹690 crores and a fresh issue aggregating up to ₹50 crores. The shares will be allotted on a date that is yet to be announced. The credit of shares to the demat account will take place on a date that is yet to be announced and the initiation of refunds will take place on a date that is yet to be announced.

Objective of FirstMeridian Business Services Limited IPO

• Repayment and/or prepayment of all or certain portion of outstanding borrowing (including accrued interest) availed by one of their subsidiaries, namely Innovsource Services Private Limited.

• General corporate purposes.

• In addition, the company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges and enhancement of the company’s brand name amongst their existing and potential customers, and creation of a public market for their Equity Shares in India.

Industry Outlook

The total human resource solutions market size is estimated to be ₹16,450.00 billion in the financial year 2022, with the market growing by a CAGR of 13.1% between the financial year 2016 to the financial year 2020, and by 4.0% in the financial year 2021. India has the second largest working-age population in the world, a critical element that will drive the growth of the staffing solutions market in India. India’s working-age population is expected to increase by over 113 million from 2021 to 2036.

Source: F&S Report

Company Information

FirstMeridian Business Services Limited is India’s third largest staffing company, in terms of revenues for the financial year ended March 31, 2022 (Source: F&S Report). The services provided include:

1. General staffing and allied services
2. Global technology solutions and
3. Other HR services.

The company provides clients with associates to operate in various functional roles, such as sales and marketing, customer services, warehouse management, delivery and factory staff. The number of associates increased to 126,824 as of September 30, 2022, and 118,082 as of March 31, 2022, compared to 86,690 as of March 31, 2020.

Risks of FirstMeridian Business Services Limited IPO

• The company has a history of losses and has experienced negative cash flows from operating, investing, and financing activities in the past.

• A significant portion of their business is attributable to certain large clients. Any deterioration of the client’s financial condition or prospects may have an adverse impact on FirstMeridian’s business. Further, if they fail to expand the size of their business with existing clients or expand to new clients, or if they lose their large clients, their business, revenue, profitability, and growth will be adversely affected.

• The business is subject to extensive government regulation, which may restrict the types of services that are permitted to be offered or result in additional tax or other costs that reduce its revenue and earnings.

• Demand for their staffing services may decline whereby human labour is or may be replaced by or disrupted by technology and automation, which may adversely affect their business prospects, operations and financial condition.

Anchor Investor Information

The anchor investor bidding will take place one day before the IPO opens. The exact date is yet to be announced.

IPO Registrar and Book Running Lead Managers

Book Running *Lead Managers:

JM Financial Limited

DAM Capital Advisors Limited

Edelweiss Financial Services Limited

IIFL Securities Limited

Registrar for the IPO is Link Intime India Private Limited

Business Model

FirstMeridian Business Services Limited is a fast-growing company with an asset-light business model. The company earns its revenues from the following sources by providing a wide range of service offerings, including:

1. General staffing and allied services, by offering contract staffing solutions, workforce automation solutions and trade marketing solutions to meet business needs of clients across diverse industries.

2. Global technology solutions that are offered through short-and long-term technology contract staffing solutions for clients.

3. Other HR services, including permanent recruitment, recruitment process outsourcing (RPO), pharmaceutical and healthcare staffing, facility management, engineering and technical staffing, and finance accounting and legal staffing.

Where each of their services are offered under different brand names.

Company Growth Trajectory

The number of the company’s Associates increased to 126,824 as on September 30, 2022, and 118,082 as on March 31, 2022, as compared to 86,690 as on March 31, 2020.

The revenue from operations increased to ₹28,62.123 crores as on March 31, 2022 from ₹20,58.437 crores as on March 31, 2020, representing a CAGR of approximately 17.92%. The revenue from operations amounted to ₹17,35.238 crores for the six-month period ended on September 30, 2022, and ₹13,06.240 crores for the six-month period ended on September 30, 2021.

Company Market Position

FirstMeridian Business Services Limited is India’s third-largest staffing company in an industry characterized by economies of scale. The company has developed sector-specific capabilities that have enabled it to serve a diverse client base in a wide range of industries, including telecommunications, retail, banking, financial services and insurance (“BFSI”), construction and infrastructure, information technology (“IT”) and information technology-enabled services (“ITES”), e-commerce, manufacturing and engineering, and logistics.

How To Check Allotment Status of FirstMeridian Business Service Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is FirstMeridian Business Service Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Link Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select FirstMeridian Business Service Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status