Mumbai-based facility management company Hands-On Management Services Pvt. Ltd is in talks with prospective investors to sell a majority stake, a company spokesperson told VCCircle.
“The Hands-On management is in the advanced stages of a strategic tie-up with potential investors to expand company operations,” the spokesperson said.
Hands-On was founded in 2012 by Manindra Kumar, Deepa Hegde and Jyoti Jagtap. Kumar, who also founded executive search firm Recruitment World, said he will fully exit Hands-On by selling his stake to Nitin Chandak, a senior executive at a private bank. Chandak will acquire a majority stake while the other two co-founders will retain a minority share.
Hands-On is currently present in Maharashtra and Gujarat, and the acquisition will help it expand its presence across India.
“We have built a strong base for Hands-On. Nitin is passionate about Hands-On and will take the company to the next level,” Kumar said.
The company has around 200 employees and expects to report revenue of Rs 3 crore in 2016-17.
The facility management segment has seen several deals in the past couple of years.
Last month, Chennai-based integrated facilities management services firm Updater Services Pvt. Ltd raised Rs 100 crore (around $15 million) from MOPE Investment Advisors Pvt. Ltd in return for a minority stake.
In January, Security and Intelligence Services (India) Ltd, the country’s second-largest private security services firm, received regulatory approval for an initial public offering. Last year, SIS had acquired TVS Capital-backed facility management company Dusters Total Solutions Services Ltd.
According to research and consulting firm Frost & Sullivan, the segment is expected to grow from Rs 8,414.7 crore in 2015 to around Rs 20,000 crore by 2019.
*The article has been updated to reflect that the deal hasn't closed as previously reported.
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