Happy Square Outsourcing Services is a prominent player in staffing and recruitment solutions, operating the popular White Force Jobs platform in India.

White Force Jobs is a leading job board connecting over 1 million registered candidates with approved employers, offering:

• Career advice and news.

• Real-time connections.

• Unique communication and engagement tools.

The platform's mission is to make finding the right candidate or job easy for both jobseekers and recruiters.

Company Overview

Core Business:

• Integrated staffing and recruitment services.

• Online job board and portal for employers.

• Catering to India’s large and growing job market.

The company focuses on high-quality service, innovative recruitment solutions, and building strong employer relationships.

IPO Details

• IPO Type: Book Built Issue (100% Fresh Issue)

• Issue Size: ₹24.25 Crores (31.90 lakh shares)

• Price Band: ₹72 to ₹76 per share

• Market Capitalisation (at ₹76): ₹88.16 Crores

Key Dates:

• IPO Opens: July 03, 2025

• IPO Closes: July 07, 2025

• Allotment Date: Expected July 09, 2025

• Listing Date (NSE SME): Tentative July 10, 2025

Investment Terms

• Lot Size: 1,600 shares

• Retail Minimum Investment: ₹2,43,200 (2 lots, 3,200 shares)

• HNI Minimum Investment: 3 lots (4,800 shares) for ₹3,64,800

Note: The high minimum investment threshold is aimed at serious retail and HNI investors.

IPO Handling Parties

• Book Running Lead Manager: CORPWIS ADVISORS PRIVATE LIMITED

• Registrar: PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED

• Market Maker: Giriraj Stock Broking Private Limited

These partners ensure efficient processing of applications and allotments.

Promoters and Management

• Shraddha Rajpal and Nalini Rajpal with 10+ years of combined experience in staffing and recruitment.

• They focus on building an integrated staffing company, with strong values and systems.

• Their direct involvement in operations ensures agility and responsiveness.

Business Strategy and Strength

• Integrated staffing model serving diverse industries.

• Proprietary job portal (White Force Jobs) with 1 million+ registered candidates.

• Strong relationships with approved employers.

• Ability to scale operations cost-effectively.

This combination of tech and services is key to their competitive advantage.

Financial Performance

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:

• FY23: ₹178.78 Lakh

• FY24: ₹439.32 Lakh

• FY25: ₹590.34 Lakh

The company shows consistent growth, indicating strong demand for staffing services and operational scaling.

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 Benchmark: 40x

Return Ratios:

• ROCE: 57.75%

• ROE: 61.97%

• RoNW: 61.97%

These excellent return ratios suggest strong capital efficiency. However, IPO pricing is seen as fully valued relative to its growth stage.

Grey Market Premium (GMP)

• Current GMP: ₹0

• Implied Listing Gain: None expected

Investor Note:

• GMP is informal and not officially traded.

• Zero GMP indicates market caution about short-term gains.

• Risk-averse investors should be aware of listing volatility.

Competitive Advantages

• Established online portal with strong brand recall.

• Large database of jobseekers (1 million+).

• Integrated service model improves margins.

• Experienced management with staffing domain knowledge.

• Operating in a fast-growing employment market in India.

Risks and Challenges

• High minimum investment threshold for retail investors.

• Valuation fully priced at upper band with P/E ~15x vs industry 40x.

• GMP at 0 suggests no clear listing premium.

• Execution risk as competition in online job portals and staffing is intense.

• Economic cycles can impact recruitment demand.

Analyst Recommendation

Despite strong revenue growth and high ROCE/ROE, the IPO appears fully priced with no near-term listing gains.

Recommendation:

• Avoid for listing gains given zero GMP and full pricing.

• Long-term investors who believe in India's staffing market can consider tracking post-listing movement for better entry opportunities.

Conclusion

The Happy Square Outsourcing Services IPO reflects a high-growth staffing company with solid fundamentals, but the pricing leaves little upside for short-term traders.

Key Positives:

• Strong revenue and profit growth trajectory.

• Excellent return ratios (ROCE, ROE).

• Large, engaged candidate base on White Force Jobs.

Key Concerns:

• Fully priced IPO with no listing gains projected.

• High minimum investment requirement.

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  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.

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