FirstMeridian Business Services files Rs 800-crore IPO papers with SEBI, promoters to trim stake via issue

Shares of FirstMeridian Business Services will list on the BSE and National Stock Exchange (NSE).

The public issue of FirstMeridian Services consists of a fresh issue of equity shares worth up to Rs 50 core.

Staffing company FirstMeridian Business Services has filed draft IPO (Initial Public Offer) papers with capital markets regulator SEBI. The company is looking to raise Rs 800 crore through the issue which is a mix of fresh issue of equity shares and an Offer For Sale (OFS) by existing shareholders of the company. Shares of FirstMeridian Business Services will list on the BSE and National Stock Exchange (NSE). FirstMeridian Business Services was incorporated in 2018.

The public issue of FirstMeridian Services consists of a fresh issue of equity shares worth up to Rs 50 core and an offer for sale aggregating to Rs 750 crore. As part of the OFS, Manpower Solutions Limited, the promoter of the company will sell shares worth Rs 665 crore. Further, existing shareholders New Lane Trading LLP and Seedthree Trading LLP will offload shares to the tune of Rs 45 crore and Rs 40 crore, respectively. JM Financial, DAM Capital Advisors, Edelweiss Financial Services and IIFL Securities are the book running lead managers to the issue.

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Adani Ports and Special Economic Zone, PhonePe, Usha International, Exide Industries, Eureka Forbes, and Dell International Services India are some of the clients of FirstMeridian Services. According to the draft red herring prospectus of FirstMeridian Services plans to utilise the net proceeds from the fresh issue towards the payment of debt and general corporate purposes. The firm will receive only Rs 50 crore from the IPO proceeds while the rest is an OFS. 

On listing the company will join listed peers such as Quess Corp Limited and Team Lease Services Limited. 75% of the IPO has been reserved for Qualified Institutional Buyers while 15% is reserved for Non-institutional Investors (NII) and 10% is for retail investors.

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FirstMeridian provides services such as general staffing and allied services, by offering solutions for contract staffing, workforce automation, trade marketing, and global technology through short and long-term technology contract staffing. Additionally, the company offers services such as permanent recruitment, recruitment process outsourcing, pharmaceutical and healthcare staffing, facility management and engineering and technical staffing solutions.

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