FirstMeridian Business Services gets Sebi's go ahead to float Rs 800-cr IPO

Staffing firm FirstMeridian Business Services Ltd has received capital markets regulator Sebi's go ahead to raise up to Rs 800 crore through an initial public offering (IPO). The IPO will include a fresh issue of equity shares worth up to Rs 50 crore and an Offer for Sale (OFS) worth up to Rs 750 crore by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).

As a part of the OFS, promoter Manpower Solutions Limited will sell shares worth Rs 665 crore while existing shareholders New Lane Trading LLP and Seedthree Trading LLP would sell shares worth Rs 45 crore and Rs 40 crore, respectively.

The company, which filed preliminary IPO papers with Sebi in May, obtained its observation letter on October 18, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

In Sebi's parlance, obtaining an observation letter means its go ahead to float the IPO.

The company, which counts Adani Ports and Special Economic Zone, Dell International Services India, PhonePe, Usha International, Exide Industries and Eureka Forbes as some of its key clients, has proposed to utilise the net proceeds from the fresh issue towards the payment of debt and general corporate purposes.

JM Financial, DAM Capital Advisors, Edelweiss Financial Services, and IIFL Securities are the book-running lead managers for the issue. The equity shares will be listed on the BSE and NSE.

FirstMeridian, which was founded in 2018, provides a wide range of services, including general staffing and allied services. It offers solutions for contract staffing, workforce automation, trade marketing, and global technology through short and long-term technology contract staffing.

In addition, the Bengaluru-based firm provides other HR services like permanent recruitment, recruitment process outsourcing, pharmaceutical and healthcare staffing, facility management and engineering and technical staffing solutions.

The company has a pan-India presence with over 50 branch offices for sourcing and recruitment in 75 cities, with more than 1.18 lakh associates deployed at over 3,500 locations as of March 2022. Its revenue from operations stood at Rs 2,110 crore for the year ended March 2021.