Happy Square Outsourcing Services Limited is launching its ₹24.25 Crore IPO through a fresh issue of 31.90 lakh shares. The subscription window is open from July 03, 2025 to July 07, 2025.

Allotment is likely to be finalised by July 09, 2025, with the company's shares planned to list on the NSE SME platform on July 10, 2025.

The price band for the IPO is ₹72 to ₹76 per equity share, translating to a market capitalisation of approximately ₹88.16 Crores at the upper end.

Retail investors can apply in lots of 1,600 shares (minimum investment ₹1,21,600), while HNIs need a minimum of 2 lots (3,200 shares) amounting to ₹2,43,200.

CORPWIS ADVISORS PRIVATE LIMITED is the book running lead manager, PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED is the registrar, and Giriraj Stock Broking Private Limited is the market maker for the issue.

Company Overview and Business Model

Happy Square Outsourcing Services is a prominent player in India’s staffing industry, known for its flagship platform White Force Jobs.

White Force is a leading career destination that serves job seekers at all stages of their careers, featuring:

• Over 1 million registered candidates

• Career advice and news

• Real-time connections with approved employers

Their unique communication and engagement tools connect jobseekers and recruitment agencies efficiently, helping employers find the right candidates with ease.

The company's integrated approach offers seamless recruitment solutions to employers across diverse sectors, making it a trusted partner in India’s evolving job market.

Promoters and Management Strength

The company is promoted by Shraddha Rajpal and Nalini Rajpal, who together bring over 10 years of experience in the staffing industry.

Key leadership strengths include:

• Passion for building an integrated staffing company

• Deep industry experience supporting strategic growth

• A strong value system guiding operations and client relationships

Their hands-on leadership has been central to the company’s rapid expansion and market credibility.

Financial Performance and Growth Metrics

Happy Square Outsourcing has delivered steady and strong financial growth, with revenues and profits rising over the past three years.

• Revenue from Operations:

  • FY23: ₹5,280.11 Lakh

  • FY24: ₹6,954.31 Lakh

  • FY25: ₹9,768.35 Lakh

• EBITDA:

  • FY23: ₹294.13 Lakh

  • FY24: ₹669.89 Lakh

  • FY25: ₹958.25 Lakh

• Profit After Tax (PAT):

  • FY23: ₹178.78 Lakh

  • FY24: ₹439.32 Lakh

  • FY25: ₹590.34 Lakh

This consistent upward trajectory demonstrates:

• Strong demand for staffing solutions

• Effective cost management

• Scalable business model

Valuation and Key Financial Ratios

The IPO appears fully priced relative to its financials and industry benchmarks:

• Pre-issue EPS (FY24): ₹7.02

• Post-issue EPS (FY24): ₹5.09

• Pre-issue P/E ratio: 10.82x

• Post-issue P/E ratio: 14.93x

• Industry P/E ratio: 40.00x

Profitability and efficiency metrics underscore robust business health:

• ROCE (FY24): 57.75%

• ROE (FY24): 61.97%

• RoNW: 61.97%

These figures indicate excellent capital efficiency, positioning the company strongly within the Indian staffing sector.

Grey Market Premium (GMP) Analysis

Currently, the Grey Market Premium (GMP) for Happy Square Outsourcing IPO is ₹0.

Key points to understand about GMP:

• It is unofficial and unregulated

• It depends entirely on demand and supply in informal markets

• It does not guarantee listing price performance

Investors should consider that real price discovery happens only after listing on the stock exchange.

Use of IPO Proceeds

The entire IPO is a fresh issue, meaning the company will receive the full proceeds for its growth and operational needs.

Expected uses include:

• Strengthening working capital

• Expanding service capabilities

• Investing in technology and platform upgrades

• Supporting geographical expansion

This capital infusion will help the company scale operations and meet growing demand in the staffing sector.

Competitive Advantages and Market Position

Happy Square Outsourcing’s competitive strengths include:

• A leading job board (White Force Jobs)

• Over 1 million registered jobseekers

• Proven engagement tools for agencies and employers

• Deep industry experience among promoters

Such capabilities give the company a strong position in India’s dynamic and growing human resources industry.

Risks and Considerations for Investors

Potential investors should evaluate these key risks:

• Intense competition from other staffing and HR technology firms

• Economic cycles affecting hiring trends

• Challenges in managing rapid growth

• Dependence on technology infrastructure

These risks highlight the need for diligent investment decisions and long-term perspective.

Expert Recommendations

Given the valuation, GMP trends, and current market conditions, analysts generally recommend avoiding this IPO for short-term listing gains.

However, investors with a long-term horizon may see opportunities if the company can:

• Sustain growth momentum

• Enhance technology offerings

• Expand into new regions and sectors

Conclusion

Happy Square Outsourcing Services Limited offers investors a chance to participate in India’s fast-growing staffing industry.

With its integrated service model, large user base, and strong financial growth, the company has laid a solid foundation for expansion.

While short-term listing gains appear unlikely given the zero GMP, its market leadership and scalable business model make it worth watching for long-term investors interested in India’s HR services sector.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are  Asston Pharmaceuticals, CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India.

The Current active IPO are Crizac, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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