Investing in Initial Public Offerings requires a thorough examination of the company’s core business, financial health, and future prospects. For many investors, particularly those from the Muslim community, an additional layer of diligence involves assessing the investment’s adherence to Islamic Shariah principles. Here, we delve into the Happy Square Outsourcing Services Ltd. (White Force) IPO, covering its operations, financial landscape, IPO specifics, and its confirmed Shariah status.
Table of Contents
Crucial Shariah Status: Happy Square Outsourcing Services Ltd. is Non-Shariah Compliant
For Muslim investors, ensuring an investment aligns with Islamic Shariah principles is a fundamental consideration. Based on the detailed screening, Happy Square Outsourcing Services Ltd. is explicitly categorized as Non-Shariah Compliant.
- The company’s business in HR outsourcing and consulting passes the Shariah screening.
- Its impermissible income to total revenue ratio passes.
- The interest-bearing debt to total assets ratio also passes the screening.
- However, the company fails Rule 4 due to insufficient illiquid assets.
- The net liquid assets v market capitalisation and non-compliant investments to total assets ratios both pass the screening.
Therefore, for Muslim investors strictly prioritizing Shariah compliance, Happy Square Outsourcing Services Ltd. IPO is not considered a Shariah-compliant investment option.
For other investors who are still interested in understanding the operational and financial specifics of this IPO, please proceed further for reading more details. This analysis is provided for all investors.
About Happy Square Outsourcing Services Ltd. (WHITEFORCE): IT & Recruitment Solutions
Happy Square Outsourcing Services Limited, incorporated in April 2017, specializes in HR outsourcing, with a focus on recruitment, payroll, onboarding, and flexible staffing. The company operates a tech-based human resource outsourcing business providing end-to-end solutions. White Force, a premium brand of Happy Square Outsourcing Services Limited, is a leading career destination for job seekers and a job board for employers in India. With over 1 million candidates registered, professionals receive career advice, news, and real-time connections with approved employers. Unique communication and engagement tools connect jobseekers and job agencies with easy-to-find right candidates.
- The company provides flexible and efficient IT talent solutions, including remote contract manpower, temp-to-hire staffing, recruitment services, and ready-to-deploy bench resources.
- It aims to scale teams flexibly and efficiently without location constraints, ensuring cost-effective solutions, faster project execution, and enhanced productivity.
- Happy Square operates in both the Indian and US markets, understanding the specific needs of each region for staffing solutions.
- As of July 31, 2024, the company has 4,225 personnel deployed at various client locations.
- As of July 31, 2024, the company had 151 department employees.
- The company is an ISO 9001:2015 certified company.
Technology-Driven Platforms:
- White Force Plus: A Recruitment Management System built using Laravel 8, designed to streamline recruitment processes. It enables user management of clients, job positions, and candidates, along with features such as job posting, AI-based parsing, and administrative oversight.
- Happiest Resume: Built for creating professional resume templates for budding candidates. This software helps craft visually appealing, industry-approved resumes, enhancing chances of securing job opportunities. It also features intelligent job search, connecting users with potential employers, and is designed using Laravel and React for a seamless, responsive experience.
- Happy Hire: This product helps clients manage the entire recruitment process and CRM activities efficiently. It enables tracking office operations, streamlining workflows, automating tasks, generating reports, and maintaining a centralized database. Designed with Laravel, it ensures a secure, scalable, and user-friendly experience.
Competitive Strengths:
- Customer Satisfaction and long-standing relationships with its customers.
- Experienced Promoter and Management Expertise.
- Scalable Business Model.
- Catering to diversified industrial verticals.
- Strong financial position and good track record of financial performance.
Happy Square Outsourcing Services Ltd. IPO: Key Details
The Initial Public Offering of Happy Square Outsourcing Services Ltd. is structured as a Bookbuilding Issue. The IPO opens on Thursday, July 3, 2025, and is scheduled to close on Monday, July 7, 2025. The company aims to raise a total of ₹24.25 Crores through the fresh issuance of 31,90,400 shares.
- IPO Open Date: July 3, 2025 (Thursday)
- IPO Close Date: July 7, 2025 (Monday)
- Face Value: ₹10 per share
- Issue Price Band: ₹72 to ₹76 per share
- Lot Size: 1,600 Shares
- Minimum Investment (Retail): 1 lots (1,600 shares) amounting to ₹1,21,600
- Total Issue Size: 31,90,400 shares (aggregating up to ₹24.25 Crores)
- Net Offered to Public: 29,02,400 shares (aggregating up to ₹22.06 Crores)
- Issue Type: Bookbuilding IPO
- Listing At: NSE SME
- Tentative Allotment Date: Tuesday, July 8, 2025
- Initiation of Refunds: Wednesday, July 9, 2025
- Credit of Shares to Demat: Wednesday, July 9, 2025
- Tentative Listing Date: Thursday, July 10, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 7, 2025
Financial Performance: A Snapshot of Happy Square Outsourcing Services Ltd.
Happy Square Outsourcing Services Limited’s revenue increased by 40% and profit after tax (PAT) rose by 34% between the financial year ending March 31, 2025, and March 31, 2024.
- Assets: Increased from ₹14.32 Crores in March 2023 to ₹39.64 Crores in March 2025.
- Revenue: Grew from ₹52.80 Crores in March 2023 to ₹97.68 Crores in March 2025.
- Profit After Tax: Rose consistently from ₹1.79 Crores in March 2023 to ₹5.90 Crores in March 2025.
- EBITDA: Increased from ₹2.85 Crores in March 2023 to ₹9.45 Crores in March 2025.
- Net Worth: Showed significant growth, from ₹2.14 Crores to ₹12.48 Crores in the same period.
- Reserves and Surplus: Increased from ₹2.13 Crores to ₹12.47 Crores.
- Total Borrowing: Increased from ₹6.57 Crores in March 2023 to ₹14.59 Crores in March 2025.
Key Performance Indicator (KPI): Happy Square Outsourcing Services Ltd.
Key Performance Indicators offer insights into Happy Square Outsourcing Services Ltd.’s efficiency and valuation as of Monday, March 31, 2025.
- The market capitalization of White Force IPO is ₹88.16 Crores.
- ROE (Return on Equity): 61.97%.
- ROCE (Return on Capital Employed): 57.75%.
- Debt/Equity: 1.17.
- RoNW (Return on Net Worth): 61.97%.
- PAT Margin: 6.06%.
- EBITDA Margin: 9.70%.
- Price to Book Value: 5.12.
Objects of the Issue: Purpose of the IPO Funds
White Force IPO proposes to utilize the Net Proceeds from the issue towards the following objectives:
- Funding of working capital requirements of the Company: ₹190.00 Million.
- General corporate purposes: ₹0.00 Million.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for White Force NSE SME is ₹5, which is approximately 6.58% over the issue price. This suggests a potential listing price of ₹81 (₹76 upper band + ₹5 GMP). GMP is an unofficial indicator that reflects market sentiment and can fluctuate.
Conclusion and Investor Outlook
Happy Square Outsourcing Services Ltd. (WHITEFORCE) operates in the dynamic HR outsourcing and IT solutions sector, demonstrating strong financial growth and robust profitability. Its focus on technology-driven platforms and a diverse client base highlights its operational strengths. However, its non-Shariah compliant status due to insufficient illiquid assets is a key consideration for Shariah-conscious investors.
For all investors, a thorough review of the Red Herring Prospectus (RHP) is essential to understand the company’s detailed business model, risk factors, and future strategies. An informed investment decision is always based on comprehensive research aligned with individual investment goals and risk tolerance.
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