PAN HR Solution Ltd Submits DRHP for 21.84 Lakh-Share BSE SME IPO

New Delhi, Oct 3, 2025: PAN HR Solution Ltd., a people and staffing services firm, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise funds through an initial public offering (IPO) on the BSE SME platform. The issue comprises a fresh issue of up to 18,00,000 equity shares, along with an Offer for Sale (OFS) of 3,84,000 shares by promoter Rajni Kumari, bringing the total offer size to 21,84,000 equity shares.

Details such as the price band, lot size, anchor investor allocation, and subscription schedule will be announced in due course. Marwadi Chandarana Intermediaries Brokers Pvt Ltd has been appointed as the book-running lead manager, while Maashitla Securities Pvt Ltd will serve as the registrar to the issue.

Established in 2015 and demutualized as a public company in May 2025, PAN HR Solution operates with a B2B staffing and outsourcing model. PAN HR Solution has firmly established itself in e-commerce logistics, manufacturing, IT services, and facility management sectors. Its services include manpower deployment, payroll processing, compliance auditing, and customized staffing solutions. As of August 31, 2025, the company had 9,393 employees across client locations. It has e-commerce customers as the bulk of its business with nearly 85 percent of total FY25 revenue.

PAN HR Solution Ltd IPO Structure and Proceeds

Of the total offer, the fresh issue will raise ₹1,150 lakh for working capital requirements and general corporate purposes. The Offer for Sale (OFS) component will enable promoter Rajni Kumari to sell a portion of her holdings, with the proceeds going directly to the selling shareholder.

PAN HR Solution Ltd IPO Financial Performance

The company has demonstrated consistent revenue growth over the past three years, with revenue from operations rising from ₹25,610.28 lakh in FY23 to ₹28,318.88 lakh in FY25. Profit after tax (PAT) increased from ₹384.23 lakh in FY23 to ₹494.61 lakh in FY25, reflecting a compound annual growth rate (CAGR) of approximately 13.6%. Earnings per share (EPS) improved to ₹10.03 in FY25 from ₹7.81 in FY23, while net asset value (NAV) per share increased from ₹24.59 to ₹33.55 over the same period. Return on equity (ROE) remained strong at 30.76% in FY25, slightly lower than the previous year, and EBITDA margins rose moderately to 2.42%.

PAN HR Solution Ltd IPO Promoters and Shareholding

PAN HR Solution is promoted by Rajeev Kumar and Rajni Kumari, who together hold approximately 90.45% of the company’s pre-issue equity. Promoter holdings are expected to be diluted following the IPO, which includes both the fresh issue and the Offer for Sale (OFS).

PAN HR Solution Ltd IPO Strengths and Opportunities

The company is a market leader in manpower outsourcing, serving clients across India with recurring service contracts. Its strong position in e-commerce logistics, consistent profitability, and high return ratios are key strengths. PAN HR Solution is also ISO certified, holding 9001:2015, 14001:2015, and 45001:2018 certifications, which further enhance the credibility of its operations.

PAN HR Solution Ltd IPO Risks and Challenges

The draft prospectus highlights several investor risks. The company is highly dependent on a few major clients, with FY25 revenue from its top 10 customers accounting for 98.8% and its largest single client contributing 68.6%, making it vulnerable to customer defections. Its reliance on the e-commerce sector, which generated 85% of revenues, also exposes it to sector-specific slowdowns. Additionally, the business is working-capital intensive, and the transition from a “collect-and-pay” to a “pay-and-collect” model may place pressure on liquidity. Past statutory dues and delays in ROC filings, though now regularized, indicate potential compliance concerns. Finally, operating margins remain modest relative to peers in the staffing industry.

Outlook

PAN HR Solution’s IPO is structured to balance raising growth capital with providing a partial exit for the promoter. While the company’s financial track record demonstrates stability and strong return ratios, high client concentration and sectoral exposure remain key areas of concern. The final price, subscription response, and post-listing performance will offer investors clearer insights once the issue opens on the BSE SME platform.

REF: https://www.bsesme.com/download/352910/SME_IPO InPrinciple/DRHPPANHR_20250930211108.pdf

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