FirstMeridian files fresh papers for reduced Rs 740 crore IPO

The Bengaluru based staffing company, FirstMeridian Business Services Ltd, recently revised plans for its IPO. While re-filing for its IPO with SEBI, FirstMeridian also reduced the proposed IPO size from Rs 800 crore to Rs 740 crore. This is in line with the tighter market conditions.

FirstMeridian was incorporated in 2008 to provide general staffing and allied services. Their modus operandi is the offering of solutions for contract staffing, workforce automation and trade marketing. They have also expanded into other HR verticals like recruitment outsourcing, pharmaceutical staffing, engineering solutions; among others.

In May 2022, the company had filed draft papers with SEBI for its Rs 800 crore IPO. This included raising Rs 50 crores via fresh issue and the balance Rs 750 crores via offer for sale (OFS) with shares offered by promoters and early shareholders. However, in the revised draft filed with SEBI, the IPO amount stands reduced to Rs 740 crores. This will comprise of a fresh issue of equity shares worth Rs 50 crores as well as an Offer For Sale (OFS) of Rs 690 crores.

As part of the OFS, Manpower Solutions Limited (promoter of FirstMeridian) will sell shares to the tune of Rs 615 crore. Among other early shareholders; Seedthree Trading LLP and New Lane Trading LLP will sell shares worth Rs 32.50 crore and Rs 42.50 crore respectively. The net proceeds from fresh issue component of the IPO will be used by FirstMeridian for repayment and prepayment of debt, apart from general corporate purposes. JM Financial is one of the key book running lead managers (BRLM) for the IPO issue.