CIEL HR Services plans to accelerate IPO after delays

K Pandiarajan, Chairperson and Executive Director, CIEL HR Group.
| Photo Credit:
BIJOY GHOSH

After a delay in listing due to turbulent market conditions in the last couple of months, CIEL HR Services, the Chennai-based tech-driven human service solutions provider, says it is now ready for the IPO.

The company will soon file an Updated Draft Red Herring Prospectus (DRHP) – a crucial step in the initial public offering (IPO) process, ensuring the prospectus complies with regulations before the final Red Herring Prospectus (RHP) is filed, said K Pandiarajan, Chairperson and Executive Director, CIEL HR Group.

“This is the right time and we want to do the listing as soon as possible,” he told newspersons without giving a timeframe. “We have to identify the anchor investors and fix the price band,” he added.

The company got the SEBI approval for its IPO in February. The proposed IPO is a combination of fresh issue of equity shares worth ₹335 crore and an offer for sale (OFS) of 47.4 lakh shares by promoters and other selling shareholders, according to the DRHP. At present, promoters and promoter group entities hold 87 per cent stake in the company.

CIEL HR reported a 35 per cent increase in net profit to ₹15 crore for the year ended March 31, 2025 as against ₹11 crore in the previous year, the company announced on Tuesday. Revenue was up by 39 per cent to ₹1,505 crore (₹1,086 crore). While the HR industry grew at around 15 per cent, the company’s growth was more than double of that, Pandiarajan said, adding that they aim for over 40 per cent growth this fiscal.

CIEL HR operates in two businesses – HR Services and HR Platforms such as Talent Assessment and Development by Jombay and Thomas Assessments. Revenue from HR Services last fiscal was ₹1,463 crore while HR Platforms contributed ₹57 crore, he said.

In the past, the company had done five acquisitions, including Jombay. It is looking at two potential acquisitions – one in background verification and another in staffing for semiconductor sector, he said.

Published on May 27, 2025