Spectrum Talent Management Limited IPO

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i. Spectrum Talent Management offers a wide array of services such as Recruitment, Payroll, Onboarding and flexible staffing. Their comprehensive network, structured processes, professionalism and strong work ethics ensure that they remain at the top on the global scale. The company is satisfy firms’ staffing, and recruitment needs globally through this specialized rich knowledge.

ii. The different steps in the staffing process include:

i. Workforce planning
ii. Recruitment and selection
iii. Placement
iv. Onboarding
v. Retention
vi. Exit or separation

iii. Offerings

i. General Staffing

a. Flexi Staffing
b. Industrial Staffing:
c. Apprentice Solution:
d. Payroll Management:
e. Compliance Management:

ii. RPO (Recruitment Process Outsourcing- Permanent Recruitment)

iii. IT Permanent Hiring Vertical

a. IT Service Permanent sub-vertical

b. IT Captives Permanent sub-vertical

Competitive Strengths

i. Tech Driven organization with an in House Technology for servicing deputed staff/employees
ii. Young organization
iii. Zero Debt/Little Leverage
iv. Flat hierarchy structure giving excellent decision making flexibility

Objects of the Spectrum Talent Management Limited IPO:

The company proposes to utilize the Net Proceeds towards funding of the following objects: i. Funding Working Capital Requirement; ii. Acquisitions of Businesses in similar or complementary areas iii. General Corporate Purposes iv. Offer Expenses

Spectrum Talent Management Limited IPO Details:

Open Date: Jun 09 2023
Close Date: Jun 14 2023
Total Shares: 6,077,600
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 105.14 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 169 to ₹173 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 22 2023

Promoters And Management:

i. Mr. Vidur Gupta, aged 38 Years, is the Promoter and Managing Director of the Company. He is the Co-Founder of Spectrum Talent Management Limited. He holds a bachelors degree in Hospitality and has then studied Entrepreneurship from Amity University. He has done his MBA in Entrepreneurship and is a specialist in Strategy & Business Development. He has extensive experience in management at all levels both in India and Overseas and Expertise in Talent Management in USA, APAC and MEA. ii. Mr. Sidharth Agarwal, aged 38 Years, is the Promoter, Whole-Time Director & CFO of the Company. He studied for his Bachelors in Business and Masters in Business from Amity Business School. He has worked with Reliance Capital for a year. This is where he gained excellent exposure towards finance and numbers. He is very strong with his finance and forecasting skills. His ability to tightly handle resources makes him the perfect person for handling the Finance function along with contract staffing for the company. He has been instrumental in ramping up Contract staffing operations and maintaining overall profitability for the company. He handles the Contract staffing, Finance, and operations for the company.

Financials of Spectrum Talent Management Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Equity Share Capital 475 950.00 855.00 1,790.75
Reserves 1,025 1,026 1,972 3,054
Borrowings 422 61 1,027 255
Trade Payables 30 99 150 289
Other Liabilities 2,129 2,495 2,471 3,266
Total Liabilities 2,581 2,654 3,648 3,809
Net Block 216 170 263 312
Investments 0 80 81 1
Other Assets 60 92 127 103
Total NC Assets 275 342 471 415
Receivables 2,020 2,488 4,083 5,967
Inventory 0 0 200 174
Cash & Bank 1,104 775 543 511
Other Assets 682 1,026 1,182 1,591
Face value 10 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Sales 32,332 30,239 48,322 77,870
Purchases of Stock In Trade 0 0 10,156 26,848
Change in Inventory 0 0 -200 35
Other Mfr. Exp 366 444 475 687
Employee Cost 30,863 29,065 35,900 46,561
Selling and admin 0 0 135 334
Other Expenses 211 231 265 530
Other Income 31 57 50 17
Depreciation 76 87 88 140
Interest 12 14 12 64
Profit before tax 835 454 1,543 2,687
Tax 159 -22 -9 24
Net profit 676 476 1,552 2,663
C. Cash Flow Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Cash From Operating Activity
Profit From Operation 905 533 1636 2179
Receivable -316 -474 -1602 -1884
Inventory 0 0 -200 26
Payable -1 69 51 139
Loans And Advances -710 113 -641 8
Other WC Items 368 349 -223 446
Working Capital Changes -659 56 -2614 -1265
Direct Taxes -312 47 -248 66
Net Cash Inflow from Operating Activity 558 542 -731 848
Cash from Investing Activity
Fixed assets purchased -136 -35 -181 -150
Investments purchased 158 -460 423 90
Dividends received 0 0 1 0
Net cash inflow from investing activities 22 -495 242 -60
Cash from Financing Activity
Proceeds from borrowings 11 0 966 0
Repayment of borrowings 253 361 0 772
Intrest paid fin -12 -14 -12 -48
Dividends paid -22 0 0 0
Other financing items 0 0 -698 0
Net Cash Flow 1104 775 543 511

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Spectrum Talent Management Limited 779 27 11.53 15.0 173 400
Quess Corp Limited 17158 223 15.14 33.6 418 6190
TeamLease Services Limited 7870 112 65.12 32.5 2153 3685
* All the data is as per FY23.

Recommendation on Spectrum Talent Management Limited IPO:

Review and Recommendation of Spectrum Talent Management by IZ team is 5/10 1. Comprehensive Services: Spectrum Talent Management offers a wide array of services including recruitment, payroll, onboarding, and flexible staffing solutions. Our aim is to cater to the diverse needs of organizations, ensuring seamless and efficient HR operations. 2. Global Reach: With over 275 clients in domestic and offshore markets, our network spans across the globe. We are committed to satisfying firms' staffing and recruitment needs worldwide, leveraging our specialized knowledge and substantial talent pool. 3. Systematic Staffing Process: They have well-defined staffing process sets us apart. From workforce planning to retention strategies, we meticulously identify and meet our clients' current and future hiring requirements. By executing a plan tailored to each client, we ensure the selection of the most suitable candidates. 4. Promoters' Experience: The success story is backed by the combined experience of the  promoters, Mr. Vidur Gupta and Mr. Sidharth Agarwal, who possess an impressive 28 years in the staffing industry. Their enriching experience and progressive thinking have been pivotal in driving our growth and building a strong value system. 5. Global Subsidiaries: Spectrum Talent Management has two subsidiary companies contributing to our global presence. STM Consulting Inc., is wholly owned subsidiary, operates in the USA, while STM Consulting Limited, our 90% subsidiary, operates in the UK. Both entities specialize in employment placement, temporary agency activities, and human resources provision. 6. Diversification Strategy: As a company focused on growth, they continually explore new lines of business. While staffing remains the core competency, they recently ventured into the export of electronic products, capitalizing on emerging opportunities. However, to maintain the core focus, they are in the process of closing the trading vertical. 7. Financials : The revenue has increased from 323 Cr in Fy20 to 778 Cr in Fy23 (Annualising 9MFY23 numbers). PAT has increased from 6 Cr in Fy20 to 26 Cr in Fy23. Company has just 2.5 Cr of debt on the books and a cash of 5 Cr as on 31.12.2022. 8. Valuation : The Annualised EPS for FY23 is 11.53 per share and based on that P/E is 15x which looks reasonable as compared to peers.

Lead Manager of Spectrum Talent Management Limited IPO:

  1. Beeline Broking Limited

Registrar of Spectrum Talent Management Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Spectrum Talent Management Limited B- 46, Retreat Apartments, 20, I.P Extension, Delhi-110092 Phone: 0120-4258857 Email: cs@stmpl.co.in Websitehttp://www.stmpl.co.in/

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