Headquartered in Delhi,and incorporated on May 09, 2012, Spectrum Talent Management Limited is a renowned human resource and staffing service provider. The promoters of the company Mr Vidur Gupta and Mr Sidharth Agarwal have a combined experience of 28 years in the staffing industry. Driven by the passion for building an integrated staffing company, backed by their experience, the promoters have been the pillars of the company's growth and have built a strong value system for the Company. With their enriching experience and progressive thinking, Spectrum Talent Management Limited (STML) aims to continue to grow in the staffing industry.
By 2023, over 275 clients have been served by the company in both domestic and offshore markets. The human resource database is the company's valuable asset, with 15,606 personnel deployed at different locations for clients as of December 31, 2022. The Spectrum Talent IPO is opening on Friday, 9 June 2023 and closing on Wednesday, 14 June 2023.
Spectrum Talent Management Limited IPO Details
Spectrum Talent Management Limited IPO is a 100% fresh issue of up to 51,85,600 equity shares with face value of ₹10 each. Additionally, the offer has its price band set between ₹169 to ₹173 per share and the lot size is 800. The IPO will list on the NSE.
Spectrum Talent Management Limited IPO Objective
The objectives of Spectrum Talent IPO are listed below:
- Funding working capital requirement.
- Acquisitions of businesses in similar or complementary areas.
- General corporate purposes.
- Offer expenses.
Should you invest in Spectrum Talent Management Limited?
Here are a few important factors to consider before investing in the IPO:
- STML's financial performance over the last three fiscal years has been as follows: In FY20, the company recorded a turnover of Rs. 323.62 cr. and a net profit of Rs. 6.76 cr. In FY21, the turnover decreased to Rs. 302.96 cr. Its net profit also decreased to Rs. 4.76 cr. Finally, in FY22, the turnover increased to Rs. 483.72 cr. while the net profit rose to Rs. 15.53 cr. During the period of 9 months of FY23, which concluded on December 31, 2022, STML did extremely well and achieved a net profit of Rs. 19.98 cr. with a turnover of Rs. 584.16 cr.
- The company is also currently providing resources on a contract and full-time basis to various State Governments in the United States and to multiple private sector organisations in the fields of pharmaceuticals, healthcare, manufacturing, banking and financial services and IT.
- The company stands at low leverage.
Competitive Peers
Quess Corp Limited and TeamLease Services Limited are the peer companies listed in India engaged in the same business line. However, they are not truly comparable on an apple-to-apple basis.
Highlights of Spectrum Talent Management Ltd
- As of the latest information, STML serves more than 275 clients in domestic and offshore markets. The Human Resource database is the key asset for the industry, and as on December 31, 2022, it has 15,606 personnel deployed at various locations for its clients.
- The company has a wholly-owned subsidiary namely STM Consulting Inc. majorly operating in the USA. Further, it also has a 90% subsidiary namely STM Consulting Limited, majorly operating in the UK. Both entities are engaged in the business of employment placement agencies, temporary employment agency activities and human resources provision and management of human resources functions.
- STML offers recruitment solutions that are custom-built for specific projects as well as to support employers on an ongoing basis.
Company Financials
| Particulars | 9 months period ended on December 31, 2022 | As at March 31, 2022 |
|---|---|---|
| Total Income | 58,415.74 | 48,372.17 |
| Profit After Tax (PAT) | 1,997.23 | 1,551.86 |
| PAT Margin | 3.42% | 3.21% |
| EBITDA | 3.71% | 3.40% |
| EBITDA Margin | 3.71% | 3.40% |
| Basic EPS | 11.15 | 9.07 |
| ROE | 41.23% | 54.89% |
Know before investing
Strengths
2STML offers a wide array of services such as recruitment, payroll, onboarding and flexible staffing. The company’s comprehensive network, structured processes, professionalism and strong work ethic ensure that it remains at the top on the global scale.
STML satisfies firms' staffing, and recruitment needs globally through specialised rich knowledge.
Risks
2STML’s top 10 and top 5 customers contributed the majority of its revenues from operations for the financial year 2021-22, 2020-21 and 2019-20. Any loss of business from one or more of them may adversely affect the company’s revenues and profitability.
The company operates in a highly competitive and fragmented industry with low barriers to entry. This can make it unable to compete successfully against existing or new competitors, particularly in the unorganised segment.
