Spectrum Talent IPO: Investors in Loss Due to Weak Listing
Spectrum Talent IPO
Spectrum Talent Management is a company that specializes in providing human resources and staffing services.
They offer a range of services, including payroll management, recruitment assistance, onboarding support, and flexible staffing solutions.
Recently, Spectrum Talent Management went public and listed its shares through an Initial Public Offering (IPO).
The IPO received a positive response from retail investors, with an issue size of Rs 105 crore. However, the company’s entry into the domestic market was lackluster.
The shares were initially issued to IPO investors at a price of Rs 173 per share. However, upon listing on the NSE-SME (National Stock Exchange – Small and Medium Enterprises) platform, the shares started trading at a lower price of Rs 155. This meant that IPO investors experienced a loss of 10% on the listing day.
Unfortunately, the downward trend continued for Spectrum Talent Management’s shares after the listing.
The share price fell further and hit the lower circuit, which is a predetermined limit imposed by stock exchanges to prevent excessive price volatility. The lower circuit for the company’s shares was at Rs 147.25.
As of the latest closing price, Spectrum Talent Management’s shares ended the day at Rs 147.25. It indicates that the share price has not recovered from the initial listing decline.
Great Response to Spectrum Talent Management IPO
The Initial Public Offering (IPO) of Spectrum Talent Management, amounting to Rs 105.14 crore, garnered a significant response from investors.
The subscription for the IPO was open from June 9 to June 14. During this period, the IPO was oversubscribed by 12.27 times, indicating strong demand from investors.
Qualified institutional investors subscribed to the IPO 11.21 times, non-institutional investors subscribed 11.68 times, and retail investors subscribed 13.10 times.
This indicates that investors across different categories showed keen interest in acquiring shares of Spectrum Talent Management.
The IPO consisted of the issuance of 51,85,600 fresh shares with a face value of Rs 10 each. Additionally, 8.92 lakh shares were sold through the Offer for Sale (OFS) window. The proceeds generated from the issuance of new shares will be utilized by the company for various purposes.
These include meeting working capital requirements, funding potential acquisitions, repayment of expenses related to the IPO, and addressing general corporate needs.
Overall, the robust subscription numbers and investor participation highlight the positive sentiment and confidence in Spectrum Talent Management’s prospects, as evidenced by the successful IPO and the funds raised to support the company’s growth and operational objectives.
About the Company
Spectrum Talent Management is a company that specializes in providing human resources and staffing services.
Their services encompass various aspects of workforce management, including payroll management, recruitment assistance, onboarding support, and flexible staffing solutions.
With a presence in both India and abroad, the company serves a wide range of clients, boasting more than 275 clients as of December 2022.
Since its establishment in 2012, Spectrum Talent Management has made significant contributions to the employment landscape.
According to available data until December 2022, the company has successfully appointed a total of 15,606 employees for its clients.
This demonstrates the company’s ability to effectively match job seekers with suitable employment opportunities.
Examining the financial performance of Spectrum Talent Management, it is noteworthy that the company experienced fluctuations in its net profit over the years.
In the financial year 2020, the net profit stood at Rs 6.76 crore. However, there was a slight decline in the following financial year, 2021, with the net profit amounting to Rs 4.76 crore.
Nevertheless, the company swiftly rebounded and achieved substantial growth in the subsequent financial year, 2022, with the net profit surging to Rs 155.2 crore.
The positive trend continued in the April-December period of the financial year 2023, as the net profit further increased to Rs 199.7 crore.
These financial figures indicate the company’s ability to adapt and thrive in the dynamic market, with significant growth observed in recent years.
The substantial increase in net profit suggests successful business strategies and effective execution by Spectrum Talent Management, positioning it as a financially resilient and promising player in the human resources and staffing industry.
