Happy Square Outsourcing Services
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Jul 2025 – 07 Jul 2025
- Listing date
- 10 Jul 2025
- Face value
- ₹10 per share
- Issue price
- ₹76 per share
- Lot size
- 1,600 shares
- Listing at
- NSE
- Total issue size
- ₹24.25 Cr
- Market cap at offer price
- ₹88.16 Cr
- Promoter holding
- 84.00% → 60.89% pre-issue → post-issue
- ISIN
- INE0TLP01015
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Corpwis Advisors Pvt.Ltd.
- Registered office
- 240, Nagpur Road, Madan Mahal, Madhya Pradesh
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 | 8,68,800 | — | — |
| Market maker | 2,88,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹76
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,21,600 |
| S-HNI (min) | 2 | 3,200 | ₹2,43,200 |
| S-HNI (max) | 8 | 12,800 | ₹9,72,800 |
| B-HNI (min) | 9 | 14,400 | ₹10,94,400 |
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 (₹) | 7.02 | 5.09 |
| P/E (×) | 10.83 | 14.93 |
| Price to book (×) | 5.12 | — |
| Market cap | — | ₹88.16 Cr |
Key performance indicators
- Return on net worth
- 61.97%
- ROCE
- 57.75%
- Debt / equity
- 1.17
- PAT margin
- 6.06%
- EBITDA margin
- 9.70%
- NAV per share
- ₹14.84
- Price to book
- 5.12
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Happy Square Outsourcing Services
Happy Square Outsourcing Services Limited, headquartered in Jabalpur, is a technology-based human resource outsourcing consulting firm incorporated on April 20, 2017. The company was originally incorporated as 'Splendid Academy Private Limited' and subsequently renamed to 'Happy Square Outsourcing Services Limited' in 2020. It was converted to a public limited company in June 2024. As of March 31, 2025, the company serves more than 500 clients across India with 5,802 personnel deployed at various locations. The company generates revenue through recruitment, payroll processing, onboarding, and flexible staffing services. The promoters, Shraddha Rajpal and Nalini Rajpal, bring combined experience of 10+ years in the staffing industry. For FY2025, the company generated revenue from operations of ₹9,741.46 lakhs with net profit after tax of ₹590.34 lakhs.
Company Analysis
from RHPHappy Square Outsourcing Services Limited is a technology-based human resource outsourcing consulting firm providing recruitment, payroll, onboarding, and flexible staffing solutions across India.
Happy Square Outsourcing Services Limited, headquartered in Jabalpur, is a technology-based human resource outsourcing consulting firm incorporated on April 20, 2017. The company was originally incorporated as 'Splendid Academy Private Limited' and subsequently renamed to 'Happy Square Outsourcing Services Limited' in 2020. It was converted to a public limited company in June 2024. As of March 31, 2025, the company serves more than 500 clients across India with 5,802 personnel deployed at various locations. The company generates revenue through recruitment, payroll processing, onboarding, and flexible staffing services. The promoters, Shraddha Rajpal and Nalini Rajpal, bring combined experience of 10+ years in the staffing industry. For FY2025, the company generated revenue from operations of ₹9,741.46 lakhs with net profit after tax of ₹590.34 lakhs.
Objects of the Issue
- Funding of working capital requirements of our Company ₹1,900.00 lakhs p.23
- General corporate purposes p.23
- Funding of working capital requirements of our Company ₹1,900.00 lakhs p.91
- General Corporate Purposes [●] lakhs (not to exceed 15% of Gross Proceeds or ₹10 crores, whichever is less) p.91
- —
Issue Structure
- Total Issue
- Up to 31,90,400 Equity Shares aggregating up to ₹[●] Lakhs
- Fresh Issue
- Up to 31,90,400 Equity Shares of Face Value ₹10 each
- Offer for Sale
- Not Applicable
- Price Band
- Floor Price: ₹72.00 per equity share; Cap Price: ₹76.00 per equity share
- Lot Size
- 1,600 Equity Shares (Minimum Bid Lot)
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue by providing human resource outsourcing services including recruitment, payroll management, employee onboarding, and flexible staffing solutions to clients across various industries. Revenue is primarily generated from temporary and permanent staffing placements, with 97% of revenues from staffing services as of FY2025.
Business Segments
SWOT Analysis
- • Large human resource database with significant personnel deployment(p.22)
- • Extensive client base across India(p.22)
- • Comprehensive service offerings and structured processes(p.22)
- • Revenue growth trajectory(p.24)
- • Experienced promoters in the staffing industry(p.22)
- • Promoter control enabling strategic direction and unified decision-making(p.49)
- • Strong revenue growth trajectory across fiscal years(p.64)
- • Healthy profitability with improving PAT margins(p.64)
- • Solid return on equity demonstrating efficient capital deployment(p.101)
- • Strong customer relationships with major clients including Cars24 and Octopolis Technologies(p.132)
- • Experienced promoter management with 10+ years in staffing industry(p.132)
- • Scalable business model with proven profitability(p.132)
- • Diversified revenue streams across multiple industries and regions(p.133)
- • Strong financial position with healthy liquidity and profitability metrics(p.133)
- • ISO 9001:2015 certification ensuring quality standards(p.125)
- • Proprietary technology platform (White Force Plus ATS and White Force Payroll HRMS)(p.140)
- • Revenue growth and market expansion(p.224)
- • Strong profitability and EBITDA margins(p.230)
- • Improving cost efficiency relative to revenue(p.225)
- • ISO certifications across multiple management systems(p.242)
- • Registered trademark 'White Force' with extended validity(p.243)
- • Operating profit growth trajectory(p.246)
- • Positive and growing net worth(p.246)
- • Persistent negative operating cash flows(p.30)
- • Limited management experience in corporate operations(p.30)
- • Frequent changes in statutory auditors(p.31)
- • High dependence on limited number of key clients(p.34)
- • High concentration of revenue in specific geographies(p.35)
- • High trade receivables as percentage of revenue(p.39)
- • Promoters subject to regulatory action for Section 167 violation(p.34)
- • Delays and defaults in GST payment(p.36)
- • Non-deduction of Professional Tax for employees(p.40)
- • Registered office on rent-free basis from promoter(p.40)
- • Significant unsecured recallable loans from promoters(p.44)
- • High customer concentration risk with top 5 customers contributing nearly 50% of revenue(p.103)
- • Elevated debt levels with net debt to EBITDA of 1.48x(p.101)
- • Promoters' collateral pledged for company borrowings creates refinancing risk(p.50)
- • Restrictive debt covenants limiting operational and strategic flexibility(p.50)
- • Limited geographical presence with current operations concentrated in India(p.134)
- • High dependency on two key promoters for business direction(p.145)
- • Operating from limited office locations(p.145)
- • High concentration of revenue from PSU clients (43.32% in FY2025)(p.126)
- • High debt-to-equity ratio and leverage(p.235)
- • Negative operating cash flows(p.190)
- • High dependence on few major customers(p.233)
- • High attrition rate in Key Managerial Personnel(p.174)
- • Rapid growth in short-term borrowings(p.197)
- • Increasing finance costs burden(p.227)
- • Negative free cash flow in recent year(p.246)
- • Unable to trace registration certificate in Kerala(p.242)
- • Pending name conversion for multiple registrations(p.242)
- • Growing staffing and flexible staffing market(p.22)
- • Driven by increasing demand for flexible staffing solutions(p.22)
- • Technology-enabled business model positioning(p.22)
- • Expansion into new geographies(p.35)
- • Working capital funding to support growth(p.23)
- • Working capital funding to support business expansion and improve profitability(p.93)
- • Public market listing enhancing corporate image and access to capital markets(p.91)
- • Expansion driven by India's rapid economic growth and job creation(p.113)
- • Government initiatives supporting employment generation and skill development(p.145)
- • Growing demand for organized staffing solutions in emerging markets(p.120)
- • Potential for economy of scale through volume expansion(p.145)
- • Opportunity to enter new geographies for enhanced market reach(p.134)
- • Innovation and process enhancement beyond back office operations(p.145)
- • Expansion in logistics and PSU sectors(p.224)
- • Continued diversification to higher-margin sectors(p.229)
- • Technology integration for cost reduction(p.230)
- • Listing on NSE Emerge Platform with migration potential to Main Board(p.262)
- • Capital raising through fresh issue(p.265)
- • Market making support for liquidity(p.263)
- • Complex and evolving labour regulations(p.35)
- • Risk of employee unionization(p.35)
- • Intense competition from organized and unorganized players(p.42)
- • Cyclicality in served industries(p.43)
- • Vulnerability to global economic downturns(p.40)
- • Technology displacement of human labour(p.42)
- • Unfavorable regulatory perception of staffing industry(p.41)
- • Government contract revenue concentration and payment delays(p.37)
- • Commodity price and economic fluctuations affecting client spending(p.43)
- • Rising minimum wage requirements(p.35)
- • Demand cyclicality tied to broader economic downturns affecting staffing utilization(p.49)
- • Fixed-price contract exposure to cost overruns without pass-through mechanisms(p.51)
- • Regulatory changes in labour codes increasing employment and compliance costs(p.56)
- • Inability to pass inflationary cost pressures to customers impacting margins(p.57)
- • Geopolitical risks including trade tensions affecting import tariffs and input costs(p.57)
- • Availability and retention challenges for quality talent across sectors(p.145)
- • High level of competition from unorganized staffing players(p.145)
- • Economic volatility and changing global economic outlook affecting hiring demand(p.145)
- • Automation and AI reducing demand for certain staffing services(p.122)
- • Regulatory changes in labour laws increasing operational costs(p.122)
- • Significant revenue concentration risk with top 5 clients representing 48.49% of revenue(p.144)
- • Working capital constraints from high receivables(p.201)
- • Rising interest rate risk on floating rate debt(p.231)
- • Competitive pressure in manpower supply sector(p.233)
- • Regulatory compliance risk in multiple states(p.241)
- • Group company competition conflict(p.181)
- • Restriction on foreign ownership for OCBs(p.264)
- • Regulatory compliance requirements and SEBI oversight(p.257)
- • Requirement for minimum number of allottees(p.258)
- • Investment limitations for certain categories(p.279)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Shraddha Rajpal | Promoter | 50.00% | 36.25% |
| Nalini Rajpal | Promoter | 25.00% | 18.12% |
| Shraddha Rajpal | Promoter | 50.00% | 36.25% |
| Nalini Rajpal | Promoter | 25.00% | 18.12% |
| Shishir Rajpal | Promoter Group | 6.50% | 4.71% |
| Sheetal Rajpal | Promoter Group | 2.50% | 1.81% |
| Shraddha Rajpal | Promoter | — | — |
| Nalini Rajpal | Promoter | — | — |
| Shraddha Rajpal | Promoter | 50.00% | — |
| Nalini Rajpal | Promoter | 25.00% | — |
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.