Human resources firm Genius Consultants Ltd on Friday filed for an initial public offering (IPO) comprising fresh equity worth Rs 170 crore and one million shares of promoter Rajendra Prasad Yadav, also chairman and managing director.
With this, the Kolkata-based firm is all set to join listed peers Gaja Capital-backed TeamLease Services Ltd, Fairfax-backed Quess Corp Ltd, and CX Partners-backed Security Intelligence Services Ltd, which went public in the last two years.
On Wednesday, three firms – Mazagon Dock Ltd, Rail Vikas Nigam Ltd, and Varroc Engineering Ltd – filed for IPOs.
Use of proceeds
Genius aims to use proceeds from the IPO in the following way: Rs 55 crore towards working capital requirements, Rs 30.924 crore on upgrading its information technology infrastructure, and Rs 2.9 crore on setting up branch offices. The company has set aside Rs 30 crore for strategic acquisitions and similar initiatives.
SBI Capital Markets and Yes Securities (India) are merchant bankers managing the IPO.
Shardul Amarchand Mangaldas & Co. is the legal consultant for the proposed IPO.
Genius, incorporated in 1993, started operations as a provider of staffing solutions and diversified into other human resources solutions.
Now, the company plans to venture into security services and human resources business process outsourcing.
Genius operates through 15 branch offices and area offices across 14 states, covering over 950 locations across the country.
The company caters to over 800 clients through over 1,100 contracts.
Its clients operate in sectors such as telecommunications, information technology, logistics, infrastructure, engineering, fast-moving consumer goods, retail, pharmaceuticals, and others. Key clients include Bharti Airtel, Bosch, Hathway Cable and Datacom, Tata Consultancy Services and Paytm.
The company caters to job seekers and companies, the latter through permanent and temporary staffing solutions.
Permanent and temporary staffing solutions together accounted for more than 95% of the company’s revenue (from operations) for nine months of 2017-18 and 2016-17.
The company claims to have placed over 250,000 associates through its temporary staffing solutions since 2001.
For 2016-17, the firm’s net profit was Rs 19.6 crore on revenue of Rs 779.74 crore.
Genius’s net profit has risen at a compound annual rate of 35% for the previous five financial years beginning 2012-13. The revenue has seen a compound annual rate of 16.81% in the same duration.