SEBI has granted approval for the Initial Public Offer (IPO) of CIEL HR Services Ltd on February 14, 2025. The company will now move forward with the subsequent steps to launch the IPO, subject to market conditions and other necessary approvals. The SEBI approval will remain valid for 12 months.
The CIEL HR Services Ltd IPO will be a Book Build Issue, with the equity shares proposed to be listed on both NSE and BSE. Ambit Pvt. Ltd is acting as the book-running lead manager, while Kfin Technologies Ltd will serve as the registrar. Details such as IPO dates, price band, and lot size are yet to be announced. Refer to CIEL HR IPO RHP for complete details.
CIEL HR IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- The company plans to use the Net Proceeds to increase its shareholding in several subsidiaries, including Firstventure Corporation Private Limited, Integrum Technologies Private Limited, Next Leap Career Solutions Private Limited, and both People Metrics Private Limited and Thomas Assessments Private Limited.
- It intends to invest in various subsidiaries to upgrade their HR technology platforms, such as ProSculpt at CIEL Skills and Careers Private Limited, Courseplay at Firstventure Corporation Private Limited, HfactoR at Integrum Technologies Private Limited, EzyComp at Ma Foi Strategic Consultants Private Limited, and Jombay at Next Leap Career Solutions Private Limited.
- The funds will also be utilised to meet the company's incremental working capital requirements.
- A portion of the proceeds is earmarked for potential inorganic acquisitions and general corporate purposes.
About CIEL HR Services Limited
CIEL HR Services is the only company in India that provides a fully integrated, technology-driven suite of human resource solutions across the entire employee lifecycle as of June 30, 2024. The company offers a wide spectrum of HR services, including recruitment, staffing, payroll processing, strategic HR advisory, and skill development, enabling organisations to attract, retain, and upskill talent effectively.
Alongside these services, CIEL HR Services also operates a portfolio of HR technology platforms that support competency evaluation, learning enhancement, employee lifecycle management, upskilling, regulatory compliance, and workforce engagement.
Between Fiscal 2021 and Fiscal 2024, CIEL HR Services recorded a strong revenue from operations CAGR of 62.00%, significantly outpacing the HR solutions industry average CAGR of approximately 18.1% over the same period.
The company follows an asset-light business model, which enhances scalability due to lower capital expenditure requirements. Although CIEL operates 18 of its own offices, it has expanded nationwide through a business partnership network.
Under this model, business partners with HR domain expertise open and manage offices under the CIEL brand, sourcing and servicing customers on the company’s behalf. This approach drives deeper market penetration and serves as an additional revenue stream.
As of June 30, 2024, CIEL HR Services had 49 business partners across 33 locations, contributing to a total of 67 offices across India, 49 of which are partner-run. The company has established a strong presence in tier-2 and tier-3 cities, strengthening its position in the Indian HR solutions landscape.
In addition to its asset-light model, CIEL HR Services has demonstrated a successful track record of inorganic growth, having completed multiple acquisitions and effectively integrated these businesses into its operations.
Industry Outlook
- The HR services sector, which includes staffing, RPO, skilling, HR advisory, and outsourcing, is set for sustained expansion with a projected 14.8% CAGR between FY2024 and FY2029, driven by rising demand for efficient recruitment, compliance management, and workforce outsourcing across industries.
- HR platforms, covering talent assessments, L&D, HRMS, and engagement tools, are expected to grow at a robust 15.9% CAGR from FY2024 to FY2029, supported by increasing digitalisation, a stronger focus on employee experience, and rapid advancements in HR and regulatory technology.
- Between FY2021 and FY2024, the HR platforms segment recorded an impressive 20% CAGR, reflecting the shift toward technology-driven HR solutions. This momentum indicates that organisations will continue prioritising digital transformation and scalable HR tech in the coming years.
How To Apply for the CIEL HR IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the CIEL HR IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
How To Check the Allotment Status of CIEL HR IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of CIEL HR Limited
Registered office: Plot No. 3726, Door No. 41, ‘Ma Foi House’ 6th Avenue, Q Block, Anna Nagar, Chennai 600 040, Tamil Nadu.
Phone: + 91 080 485 371 79
Email: companysecretary@cielhr.com
CIEL HR IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75% of the Offer |
| Retail Shares Offered | Not more than 10% of the Offer |
| NII Shares Offered | Not more than 15% of the Offer |
CIEL HR IPO Promoter Holding
Ayush Mahesh Verma is the promoter of the company.
| Share Holding Pre-Issue | 87.02% |
| Share Holding Post Issue  | - |
Note: Equity dilution will be determined by subtracting the Shareholding Post Issue from the Shareholding Pre Issue.
Key Performance Indicators for CIEL HR IPO
| KPI | Value (FY24) |
| RoCE (%) | 13.18 |
| RoE (%) | 12.90 |
| PAT Margin (%) | 1 |
| EBITDA Margin (%) | 2 |
CIEL HR IPO Registrar and Lead Managers
CIEL HR IPO Lead Managers
- Ambit Pvt Ltd
- Centrum Capital Ltd
- HDFC Bank Ltd
Registrar for CIEL HR IPO
Kfin Technologies Ltd
Phone: 04067162222, 04079611000
Email: cielhr.ipo@kfintech.com
Financial Performance of CIEL HR Limited
| Particulars (Unit) | FY 2022 | FY 2023 | FY 2024 | Three Months Ended June 30, 2024 |
| Revenue from Operations (₹ million) | 5,275.48 | 7,996.35 | 10,857.35 | 3,251.81 |
| Gross Profit (₹ million) | 392.92 | 636.07 | 994.88 | 306.67 |
| EBITDA (₹ million) | 108.84 | 62.35 | 216.95 | 70.95 |
| Adjusted EBITDA (₹ million) | 108.92 | 125.97 | 253.95 | 72.79 |
| Profit/(Loss) for the Year (₹ million) | 68.75 | (31.53) | 108.48 | 31.71 |
| Net Cash Flows from Operating Activities (₹ million) | (71.16) | (171.56) | (52.55) | 53.39 |
| Debt-to-Equity Ratio (D/E) | 9.38 | 1.72 | 0.79 | 0.80 |
Peer Comparison
| Company | P/E | RoNW (%) | Total Revenue (₹ million) |
| CIEL HR Services Ltd | - | 12.93 | 10,857.35 |
| Quess Corp Ltd | 36.26 | 9.78 | 191,001.33 |
| TeamLease Services Ltd | 41.96 | 14.06 | 93,215.30 |
| Spectrum Talent Management Ltd | 36.79 | 7.91 | 10,162.01 |
Strengths and Opportunities of CIEL HR Limited
- CIEL HR is the only technology-driven, fully integrated HR solutions provider in India covering the entire employee lifecycle as of June 30, 2024.
- It serves over 4,000 clients across diverse industries, supported by long-standing relationships and growing wallet share.
- Its asset-light business partner model enables rapid nationwide expansion, with 49 partners across 33 locations and 67 offices.
- The company has strong penetration in tier-2 and tier-3 cities, strengthening its reach in high-growth emerging markets.
- Rising adoption of distributed workforce models in India creates new opportunities for flexible staffing and HR technology.
Risks and Threats of CIEL HR Limited
- EBITDA margins in HR Services remain low, and any delay in improving profitability could strain overall financial performance.
- Heavy reliance on proprietary technology increases vulnerability to system failures, upgrade delays and lower service quality.
- A significant share of revenue comes from top customers, making the business sensitive to any slowdown or loss of these clients.
- Planned use of Net Proceeds for increasing stakes in subsidiaries may not yield direct or immediate benefits for investors.
- Net Proceeds allocated for unidentified acquisitions create uncertainty around execution timelines and adequacy of funds.
