Zoho Corporation, Pegasus India, Standard Fireworks and Prime Securities among 88 investors have picked up Rs 30 crore worth shares of CIEL HR Services via private placement ahead of IPO, at a valuation of over Rs 800 crore.
The Bengaluru-based human resources solutions provider approached capital markets in November 2024 by filing draft papers to raise funds via Initial Public Offering (IPO). The IPO comprises of fresh issuance of shares worth Rs 335 crore, and an offer-for-sale of 47.39 lakh shares by existing shareholders including promoters. The SEBI approved company's IPO papers in February 2025.
Considering the price of Rs 110 per share at which pre-IPO round has been undertaken by the company, the IPO could be amounting to Rs 387.1 crore.
CIEL HR Services in its notice to investors published on January 3 said it has undertaken a pre-IPO placement of 27.27 lakh shares at an issue price of Rs 110 per share for an amount of Rs 30 crore by way of private placement.
The Board of Directors of the company has allotted the above-mentioned shares to 88 investors including Pegasus India Evolving Opportunities Fund (the venture capital fund managed by Mumbai-based Pegasus FinInvest Advisory), and Sridhar Vembu founded Zoho Corporation which picked Rs 5 crore and 4 crore worth shares, respectively in the human resource services provider.
Tamil Nadu-based fireworks maker Standard Fireworks acquired Rs 2.2 crore shares, and Prime Securities and its subsidiary Prime Research and Advisory Rs 2 crore in CIEL.
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This is a part of fresh issue component, hence, hence the revised fresh issue size in the IPO is expected to be around Rs 305 crore.
CIEL HR Services that competes with listed peers like Team Lease Services, Spectrum Talent Management, and Quess Corp will spend Rs 40.7 crore of fresh issue proceeds for acquisition of additional shareholding in subsidiaries - Firstventure Corporation, Integrum Technologies, Next Leap Career Solutions, and People Metrics and Thomas Assessments.
Further, Rs 55.2 crore will be utilised for investment in the subsidiaries for upgradation of their platforms, Rs 100 crore for its incremental working capital requirements, and the remainder funds for unidentified inorganic acquisitions and general corporate purpose.
The merchant bankers handling the CIEL HR Services IPO are Ambit, Centrum Capital, and HDFC Bank.
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