Firstmeridian Business Services Company Business Profile
Founded in 2018, Firstmeridian Business Services is India's third-largest staffing company. The company offers a wide range of services, including general staffing & allied services, global technology solutions, and other HR services. The company has a pan-India presence with over 53 branch offices and 126,824 associates deployed at over 3,500 locations. Their clients span across industry sectors, including telecom, retail, BFSI, IT, ITES, e-commerce, manufacturing, engineering, and logistics.
Firstmeridian Business Services IPO Details:
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | Rs 10 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to [●] Equity Shares |
| aggregating up to Rs. 7,400 million | |
| Fresh Issue | Up to [●] Equity Shares |
| aggregating up to Rs. 500.00 million | |
| Offer For Sale | Up to [●] Equity Shares |
| aggregating up to Rs. 6,900.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Firstmeridian Business Services IPO Share Price
The share price of the Firstmeridian Business Services IPO is in the range of Rs XXXXX. This price range is a lower and higher band in which investors can bid while applying for the IPO. To improve probability of getting allotment in the IPO, investor should prefer to bid at the cutoff price.
Firstmeridian Business Services IPO Size & Launch Date
The launch date of the Firstmeridian Business Services IPO is not yet announced officially by the company. However, the Firstmeridian Business Services IPO will be open on the date of XXXX (to be updated) and will close on XXXXX (to be updated). All types of investors can bid for the IPO between these dates.
Firstmeridian Business Services IPO Objective
As notified by the company, objective of the Firstmeridian Business Services offer includes both offer for sale and fresh issue. The offer for sale as per DRHP is for up to Rs. 690 crores and fresh issue has been kept at Rs. 50 crores. Total number of shares for each category will be updates once the price and is released.
Firstmeridian Business Services Financial Statement:
| For 6 month ended Sept 30, 2022 | For 6 month ended Sept 30, 2021 | FY22 | FY21 | FY20 | |
| Income | |||||
| Revenue from operations | 17352.38 | 13062.4 | 28621.23 | 21102.86 | 20584.37 |
| Other income | 109.38 | 38.51 | 72.53 | 138.9 | 169.64 |
| Total income | 17461.76 | 13100.91 | 28693.76 | 21241.76 | 20754.01 |
| Expenses | |||||
| Purchase of traded goods | 7.81 | 1.52 | 20.87 | - | - |
| Employee benefits expense | 16142.29 | 12397.83 | 27048.65 | 20112.88 | 19831.08 |
| Finance cost | 29.48 | 16.36 | 42.34 | 29.12 | 18.59 |
| Depreciation and amortisation expense | 118.51 | 277.16 | 375.57 | 765.49 | 759.55 |
| Other expense | 706.84 | 417.1 | 977.91 | 630.41 | 417.09 |
| Total expenses | 17004.93 | 13109.97 | 28465.34 | 21537.9 | 21026.31 |
| Restated profit/(loss) for the period/ yea | 427.03 | 40.54 | 340.92 | -336.56 | -196.11 |
| Basic EPS | 5.54 | 0.56 | 4.67 | -4.66 | -2.72 |
| Diluted EPS | 5.37 | 0.55 | 4.53 | -4.66 | -2.72 |
| KPI | For 6 month ended Sept 30, 2022 | For 6 month ended Sept 30, 2022 | FY22 | FY21 | FY20 |
| No. of Associates | 126824 | 108738 | 118082 | 95228 | 86690 |
| Revenue from operations | 17352.38 | 13062.4 | 28621.23 | 21102.86 | 20584.37 |
| Growth in revenue from operations (%) | 32.84% | N.A. | 35.63% | 2.52% | N.A. |
| EBITDA (₹ in million | 567.02 | 251.34 | 592.52 | 396.8 | 437.31 |
| EBITDA margin (% | 3.27% | 1.92% | 2.07% | 1.88% | 2.12% |
| Profit/(loss) after tax (₹ in million) | 427.03 | 40.54 | 340.92 | -336.56 | -196.11 |
| Profit/(loss) after tax margin (%) | 2.46% | 0.31% | 1.19% | -1.59% | -0.95% |
| RoE (%) | 10.12% | 0.34% | 7.31% | -13.54% | -14.08% |
| RoCE) (% | 12.24% | 0.34% | 7.31% | -13.54% | -14.08% |
Firstmeridian Business Services Promoters & Shareholders:
Manpower Solutions Limited is the only promoter of the company. Prompter as on the date of filing DRHP, holds around 85.70% of the paid-up equity share capital of the company.
Why Invest in Firstmeridian Business Services IPO or Not?
Government Make in India mission and vision is to make Indian a manufacturing hub, which means more jobs over time. Firstmeridian Business, also India's third-largest staffing company is set to benefit from the manufacturing boom along with its strategy to acquire regional player for expanding its services and presence.
Competitive strength
India’s third largest staffing company
The company has become India's third largest staffing company because of its reach to over3500 locations because of its 53 branch offices across India. The company's reach to large geographical area allows them to offer services to clients. As of FY22, the company has hired more than 147800 associated by leveraging the team of 518 recruiting member
Diversified business
Firstmeridian Business Services core business focuses on providing general staffing & allied services to its clients. The company’s has expertise in HR services across various industries, like telecommunications, retail, BFSI, and construction and infrastructure industries.
Organic and inorganic growth
Over the years, the company has grown both in terms of size and from a financial perspective through strategic acquisitions, which has also helped them become the third largest staffing company in the country. The company has acquired many companies, such as Rlabs Enterprise Services Limited, CBSI Asia-Pacific Private Limited, and Innovsource Facilities Private Limited. They have also strengthened their value proposition to clients by diversifying their service offerings and enabling cross-selling of additional services to existing clients.
Following is the acquisition made by the company over the years.
| Period | Company/Business acquired |
| Jun-18 | Innovsource Services Private Limite |
| Jul-18 | V5 Global Services Private Limite |
| Sep-18 | Affluent Global Services Private Limited |
| Jul-20 | Cornucopia V5 |
| Sep-20 | CBSI India Private Limited. |
| Feb-22 | RLabs Enterprise Services Limited. |
Risk factors
Low EBITDA margins from primary segment
The table below shows that general staffing and allied services account for the majority of companies' revenue. The segment alone contributes more than 80% of revenue but after cutting all expenses, it contributes too little to the bottom line.
Breakdown of our revenue from operations
| For 6 month ended Sept 30, 2022 | For 6 month ended Sept 30, 2021 | FY22 | FY21 | FY20 | |
| General staffing and allied services | 86.70% | 91.29% | 90.29% | 93.31% | 94.16% |
| Global technology solutions | 11.88% | 6.98% | 8.33% | 4.94% | 3.90% |
| Other HR services | 1.42% | 1.74% | 1.38% | 1.71% | 1.94% |
EBITDA margin from segments
| For 6 month ended Sept 30, 2022 | For 6 month ended Sept 30, 2021 | FY22 | FY21 | FY20 | |
| General staffing and allied services | 1.80% | 1.80% | 1.67% | 1.42% | 1.73% |
| Global technology solutions | 15.19% | 13.92% | 14.80% | 18.24% | 15.82% |
Highly competitive and fragmented industry
The staffing solutions industry is highly fragmented and competitive with smaller competitors being having substantial presence complimented with financial resources. With the introduction and adoption of social media and professional networking websites like twitter and LinkedIn, work of staff providing companies has somewhat affected.
Concentration of large clients
As per DRHP, top 10 clients contribute significant portion of revenue of the company. Any slowdown in economy or disruption in business could lead to downsizing by clients. That may lead to reduction in their spending on the services provided by the company. At last any reduction on client side would directly impact business, profits, and operational results.
| For 6 month ended
Sept 30, 2022 |
For 6 month ended
Sept 30, 2021 |
FY22 | FY21 | FY20 | |
| % of total revenue from operations | |||||
| Top ten clients | 42.54% | 45.22% | 44.51% | 45.63% | 45.68% |
| The largest client | 12.32% | 12.96% | 10.74% | 10.21% | 12.65% |
Business Strategies
Develop new areas of growth
The company plans to expand its current services by offering more solutions across the value chain. The company is also focusing on higher margin businesses like global technology solutions, permanent recruitment, RPO, etc.
Pursue acquisitions
In past, the company has experienced rapid growth through acquisitions. The company plans to continue on its strategic acquisitions to deepen its expertise in existing segment.
Firstmeridian Business Services IPO Grey Market Premium (GMP)
The Firstmeridian Business Services IPO GMP is not yet known as the IPO price is not disclosed. Once the IPO is open, the price will be disclosed and as per the demand and supply of the share price in the open market, the Firstmeridian Business Services IPO GMP will be known. If the IPO price is undervalued, less GMP and as per the valuation of the stock overvalued there is less chance for higher GMP.
How to Apply for Firstmeridian Business Services IPO?
If you have a share trading and demat account at Moneysukh, you can easily apply for the Firstmeridian Business Services IPO. Just follow the steps given below.
Step 1:Once Firstmeridian Business Services IPO opens you can apply online.
Step 2:Browse at trade.moneysukh.com and log in with your Moneysukh User ID & password.
Step 3:Now you have to visit the IPO section and select Firstmeridian Business Services IPO.
Step 4:Here just fill in the required such as bidding price, quantity or lot and so on.
Step 5:Now you have to make the payment and your IPO application is successful.
How to Check Firstmeridian Business Services IPO Allotment Status?
Just like applying, checking the Firstmeridian Business Services IPO Allotment Status is also very easy and hassle-free through Moneysukh online platform. You have to just wait till the IPO is closed and the allotment is finalized. If you have been allotted any share it will be transferred into your demat account that you can sell after listing of the shares on the NSE or BSE stock exchanges.
Also Read: How to Increase the Chances of IPO Allotment
However, if IPO is oversubscribed and unfortunately if you have not been allotted any share, your IPO application money will be returned to your bank account or linked account where you have allocated the fund while applying for the Firstmeridian Business Services IPO.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
