Happy Square Outsourcing Services Limited, a fast-growing career and staffing services provider, has launched its initial public offering (IPO) on July 3, 2025. This is a book-built issue valued at ₹24.25 Crores, comprising only a fresh issue of 31.90 lakh equity shares. There is no offer for sale (OFS) in this IPO, and all funds raised will be used towards business expansion.

The IPO price band is fixed between ₹72 and ₹76 per share, and investors must apply for a minimum of 1 lot (1,600 shares), costing ₹1,21,600. High-Net-Worth Individuals (HNIs) are required to apply for at least 2 lots (₹2,43,200). The IPO closes on July 7, 2025, with listing expected on the NSE SME platform on July 10, 2025.

About the Company:

Happy Square is best known by its flagship platform White Force, one of India’s leading job portals for both jobseekers and employers. With over 1 million registered users, the platform provides real-time job alerts, career guidance, and recruitment tools that make it a one-stop solution for staffing and outsourcing requirements.

The company specializes in:

• Staffing for white- and blue-collar jobs

• Career counseling services

• Online recruitment tools for agencies and companies

Happy Square caters to a diverse clientele using technology-driven tools to enable seamless recruitment and workforce solutions across India.

Promoter Background:

The company is promoted by Ms. Shraddha Rajpal and Ms. Nalini Rajpal, who have 10+ years of experience in the staffing and HR industry. Their strong leadership has helped the company evolve into a major player in the recruitment and outsourcing domain.

Financial Performance:

The company has shown strong financial performance over the past three fiscal years:

The rising revenues and profits indicate a stable upward trajectory in operations. The company’s ability to scale its services and retain clients is reflected in its expanding margins and consistent profitability.

Key Valuation Metrics:

• Pre-Issue EPS (FY24): ₹ 7.02

• Post-Issue EPS: ₹ 5.09

• Pre-Issue P/E: 10.82x

• Post-Issue P/E: 14.93x

• Industry P/E: 40.00x

• ROCE (FY24): 57.75%

• ROE (FY24): 61.97%

• RoNW: 61.97%

Although the company displays impressive return ratios, the P/E valuation appears fully priced, reducing margin for listing gains.

IPO Objectives:

Happy Square Outsourcing Services plans to utilise the IPO proceeds as follows:

1. ₹ 1,900.00 Lakhs – To meet working capital requirements

2. Balance amount – To be used for general corporate purposes

The focus on working capital will help the company fuel expansion, improve operational agility, and scale its digital recruitment offerings.

Anchor Investment:

The company has raised ₹6.60 Crores from Anchor Investors at ₹76 per share by allocating 8.68 lakh shares. This early participation shows some institutional confidence, though subscription momentum remains modest.

GMP Trend:

As of June 30, 2025, the Grey Market Premium (GMP) of Happy Square Outsourcing IPO is ₹0, indicating no listing premium expected.

This absence of GMP reflects limited grey market enthusiasm, likely due to full valuation and conservative investor sentiment.

Subscription Status (As of July 4, 2025, 11:00 AM):

The IPO has been subscribed 0.41 times on the second day of its bidding period. This underwhelming response raises concerns about oversubscription and listing momentum.

IPO Registrar and Listing Details:

• Lead Manager: CORPWIS ADVISORS PRIVATE LIMITED

• Registrar: PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED

• Listing: NSE SME

• Market Maker: Giriraj Stock Broking Pvt. Ltd.

• Tentative Listing Date: July 10, 2025

Allotment Details:

Investors can check their allotment status on the registrar's website on or after July 9, 2025:

Steps:

1. Visit the IPO allotment status page

2. Select "Happy Square Outsourcing Services IPO"

3. Enter PAN or DP Client ID or Application No.

4. Click on submit to check status

Investment Recommendation:

While Happy Square has exhibited strong financial growth, its GMP is flat, and the IPO is currently under-subscribed. The valuation is on the higher side, leaving limited room for listing gains.

Recommendation:
Avoid for listing gains. Long-term investors may reassess post-listing based on market performance.

Disclaimer:

This IPO review is for informational purposes only and should not be construed as financial advice. Investing in securities involves market risks. Investors are advised to consult financial advisors and read offer documents carefully before making investment decisions. The views expressed herein are general and do not consider individual investment profiles.

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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