Spectrum Talent Management
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Jun 2023 – 14 Jun 2023
- Listing date
- 22 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹173 per share
- Lot size
- 800 shares
- Issue type
- Book Building issue
- Total issue size
- ₹105 Cr
- Market cap at offer price
- ₹89.71 Cr
- Promoter holding
- 100.00% → 73.68% pre-issue → post-issue
- ISIN
- INE0OL001018
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Sarthi Capital Advisors Pvt.Ltd.
- Registered office
- B-46, Retreat Apartments, 20, I.P Extension, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 3,04,000 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹173
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,38,400 |
| S-HNI (min) | 2 | 1,600 | ₹2,76,800 |
| S-HNI (max) | 7 | 5,600 | ₹9,68,800 |
| B-HNI (min) | 8 | 6,400 | ₹11,07,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.25 | — |
| P/E (×) | 16.88 | — |
| Market cap | — | ₹89.71 Cr |
Key performance indicators
- Return on net worth
- 42.99%
- PAT margin
- 3.21%
- NAV per share
- ₹16.52
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Spectrum Talent Management
Spectrum Talent Management Limited (formerly Spectrum Talent Management Private Limited), incorporated on May 9, 2012 and converted to a public company on January 4, 2023, is an HR services provider offering comprehensive staffing solutions. The company provides recruitment, payroll, onboarding, and flexible staffing services to clients across multiple sectors including FMCG, E-commerce, Manufacturing, Healthcare, Retail, Logistics, Banking, and Energy. It maintains a substantial talent pool and employs a structured staffing process covering workforce planning, recruitment and selection, placement, onboarding, retention, and exit management. The company has also engaged in electronics export trading to optimize capital rotation, though it is in the process of closing this non-core vertical. For the nine months ended December 31, 2022, the company reported total revenue of Rs. 58,415.74 lakhs and profit after tax of Rs. 1,997.46 lakhs.
Company Analysis
from RHPSpectrum Talent Management Limited provides staffing, recruitment, payroll, and onboarding services spanning HR services and flexi-staffing across India.
Spectrum Talent Management Limited (formerly Spectrum Talent Management Private Limited), incorporated on May 9, 2012 and converted to a public company on January 4, 2023, is an HR services provider offering comprehensive staffing solutions. The company provides recruitment, payroll, onboarding, and flexible staffing services to clients across multiple sectors including FMCG, E-commerce, Manufacturing, Healthcare, Retail, Logistics, Banking, and Energy. It maintains a substantial talent pool and employs a structured staffing process covering workforce planning, recruitment and selection, placement, onboarding, retention, and exit management. The company has also engaged in electronics export trading to optimize capital rotation, though it is in the process of closing this non-core vertical. For the nine months ended December 31, 2022, the company reported total revenue of Rs. 58,415.74 lakhs and profit after tax of Rs. 1,997.46 lakhs.
Objects of the Issue
- Funding Working Capital Requirement p.21
- Acquisitions of Businesses in similar or complementary space p.21
- General corporate purpose p.21
- Offer Expenses Rs. 37.61 Lakhs (as on May 22, 2023) p.21
- Funding Working Capital Requirement [●] p.69
- Acquisitions of Businesses in similar or complementary areas [●] p.69
- General Corporate Purposes [●] p.69
- Offer Expenses [●] p.69
- Objects of the Offer as stated in the document beginning on page 65 p.225
Issue Structure
- Total Issue
- 60,77,600 Equity Shares aggregating up to ₹[●] lakhs
- Fresh Issue
- 51,85,600 Equity Shares aggregating up to ₹[●] lakhs
- Offer for Sale
- 8,92,000 Equity Shares aggregating up to ₹[●] lakhs
- Price Band
- ₹169 to ₹173
- Lot Size
- 800 Equity Shares (Bid Lot)
- Face Value
- ₹10.00 each
Business Model
The company earns revenue primarily from providing staffing and recruitment services including flexible staffing, permanent placement, payroll processing, and onboarding solutions. It also earned revenue from export of electronic products (mobiles), though this is being discontinued. Revenue is generated by supplying qualified personnel to client organizations and charging service fees based on the staffing arrangement.
Business Segments
SWOT Analysis
- • Established market position in staffing services(p.20)
- • Diversified service offerings across HR verticals(p.20)
- • Strong revenue growth trajectory(p.20)
- • Profitable operations with growing net worth(p.22)
- • Diversified business across multiple end-user industries and clients(p.76)
- • Tech-driven organization with in-house technology platform(p.105)
- • Zero debt/minimal leverage(p.105)
- • Young organization with flat hierarchy enabling flexible decision-making(p.105)
- • Established track record and proven third-party payroll provider(p.105)
- • Combined 28 years of promoter experience in staffing industry(p.95)
- • Experienced management team with deep expertise in staffing and talent acquisition(p.136)
- • Strong financial performance with growing revenue and profitability(p.201)
- • Diversified revenue streams across staffing, recruitment, and products(p.193)
- • International presence with subsidiaries in USA and UK(p.145)
- • Established regulatory approvals across multiple Indian states(p.215)
- • No penalties or prohibitions from securities regulators(p.217)
- • Compliance with RBI and beneficial ownership regulations(p.217)
- • Positive net worth and consistent operating profitability(p.218)
- • Trademark registrations for brand identity protection(p.216)
- • 100% underwritten offer reducing subscription risk(p.219)
- • High customer concentration risk(p.27)
- • History of delayed statutory compliance(p.29)
- • Inability to fully perform background verification procedures(p.29)
- • High employee cost dependence(p.37)
- • Promoter litigation exposure(p.22)
- • Unsecured loans from promoters subject to recall(p.40)
- • Operating premises held without formal ownership(p.38)
- • Dependence on few large customers concentrating revenue risk(p.22)
- • High concentration of business in general staffing segment(p.92)
- • Dependency on promoters for operations and strategic direction(p.22)
- • Limited geographic presence and exposure to specific locations(p.22)
- • High dependence on a few major customers for revenue(p.205)
- • Concentrated promoter shareholding with limited public ownership post-IPO(p.142)
- • Significant exposure to pending litigation and tax disputes(p.210)
- • Dependence on key personnel for business operations(p.194)
- • Limited past track record—incorporated in 2012 (11 years at prospectus date)(p.218)
- • Trademark applications incomplete—not yet granted(p.216)
- • Previously withdrawn IPO—company filed and withdrew DRHP in 2023(p.214)
- • Growing flexi-staffing market demand(p.20)
- • Expansion into new sectors and geographies(p.20)
- • Post-pandemic recovery in staffing demand(p.20)
- • Acquisition strategy for business expansion(p.21)
- • Pan-India network development(p.33)
- • Organic and inorganic growth through acquisitions in similar or complementary staffing areas(p.72)
- • Expansion of IT staffing business with higher margins(p.92)
- • Growth in general staffing market projected to double by FY2026(p.92)
- • Rising flexi-staffing trend favoring contract workforce adoption(p.91)
- • Expansion into global HR services leveraging India-based cost arbitrage(p.105)
- • Strong demand across multiple sectors post-pandemic recovery(p.91)
- • Expansion into electronic goods trading and export markets(p.193)
- • Growth in global staffing and recruitment markets, particularly in USA, APAC and MEA(p.136)
- • Expansion of international business through existing subsidiaries(p.136)
- • Development of new business lines and service offerings(p.193)
- • Post-issue paid-up capital of Rs. 23.09 crore within NSE Emerge eligibility (up to Rs. 25 crore)(p.218)
- • Potential migration to NSE main board upon capital increase(p.234)
- • Foreign investment permitted up to 100% under automatic route(p.257)
- • Market making commitment ensures minimum 3 years of liquidity(p.219)
- • Intense competition with low barriers to entry(p.27)
- • Economic downturn sensitivity(p.31)
- • Complex and changing labor regulations(p.32)
- • Taxation policy changes(p.28)
- • Short-duration client contracts with termination risk(p.36)
- • Currency and commodity price volatility(p.41)
- • COVID-19 pandemic recurrence risk(p.36)
- • Highly competitive and fragmented staffing industry(p.109)
- • Regulatory changes in labour laws affecting cost structure(p.112)
- • Intense competition from international and domestic players(p.109)
- • Economic slowdown and reduced hiring by clients(p.89)
- • Dependency on contract labour regulations and compliance requirements(p.113)
- • Uncertainty and potential adverse effects from COVID-19 pandemic on business operations(p.194)
- • Intense competition in staffing and recruitment industry(p.205)
- • Economic sensitivity and dependence on general economic conditions(p.194)
- • Regulatory risks including changes in government policies affecting staffing business(p.194)
- • Exposure to employment-related claims and losses(p.194)
- • Volatility in foreign exchange and interest rates affecting operations(p.194)
- • Substantial proportion of offer is for sale by existing shareholders—not company capital raise(p.237)
- • Minimum 50 allottees required; failure triggers full refund obligation within prescribed timeline(p.231)
- • Company liability for delayed allotment or refund—interest owed at 15% per annum(p.224)
- • Company bound by future SEBI regulatory changes post-prospectus(p.232)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sidharth Agarwal | Promoter | 47.50% | 34.90% |
| Mr. Vidur Gupta | Promoter | 47.50% | 34.90% |
| Sidharth Agarwal | Promoter | 47.50% | 34.90% |
| Vidur Gupta | Promoter | 47.50% | 34.90% |
| Sidharth Agarwal (HUF) | Promoter Group | 1.25% | 0.97% |
| Ankita Gupta | Promoter Group | 1.25% | 0.97% |
| Veena Gupta | Promoter Group | 1.00% | 0.78% |
| Deepika Gupta | Promoter Group | 1.00% | 0.78% |
| Rajesh Gupta | Promoter Group | 0.50% | 0.39% |
| Vidur Gupta | Promoter | 47.50% | — |
| Sidharth Agarwal | Promoter | 47.50% | — |
| Rajesh Gupta | Promoter Group | 0.50% | — |
| Veena Gupta | Promoter Group | 1.00% | — |
| Rajeev Agarwal | Promoter Group | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.