IT People files for IPO

IT People, a company which recruits and trades people to IT/ITeS oriented company has filed draft Red Herring Prospectus for an IPO of Rs 45.25 crore to invest in technology infrastructure, and business expansion.

  • IT People (India), is a company providing Human Capital Solutions focused on the IT-ITES industry on a global basis. The company is BS7799 certified organization and has offices in India and Middle East.
  • Earlier Balwas ecom India was acquired by the present promoters IT People in 2003.
  • The company has eRecruitment portal, a global recruitment exchange portal exclusively catering to the requirement of IT Professionals in the field of Information Technology & ITES. The portal is a platform for employers, jobseekers and consultants in the IT industry to post, search, advertise and use researched information.
  • From the recruiters prospective the company provides a platform to post its requirements, receive applications, schedule interviews and manage the hiring life cycle.
  • For the job seekers it provides a platform to search for the best career opportunities available in IT companies across the globe.
  • The company through its portal provides a database search product in the IT domain for the recruiters of job seekers with multiple search facilities, unique IT skill and certification based parameters. The revenue from this service line is mainly through subscription, which could be quarterly, half-yearly or yearly as per the requirement. The company only provides the database and will not receive any revenues either from the job seeker or recruiters on recruitment.
  • On the portal other than database subscription revenues the company also earns revenues on account of visibility i.e. advertising or branding on the portal. Currently of the e-Recruitment services, which account for 50% of the total revenues, database constitutes 50% of the revenues, and 30-40% revenues are from visibility or branding solutions.
  • The second line of service is consulting wherein the company provides placement, contract and project based sourcing services and special projects like Build, Operate and Transfer. The line of business contributes 50% of the revenues.
  • Currently the company has total employee strength of 150 people with 75 people on contract staffing.
  • IT People has been appointed as exclusive partner for India by Dubai Outsource Zone (DOZ), the world’s first free zone dedicated to the outsourcing industry. Meaning any Indian company wanting to set up office in the DOZ would have to apply through IT People.
  • IT People is also the Preferred Business Partner of DOZ on a global basis for providing recruitment and human resource consultancy services, facility management services and BOT services.
  • For the quarter ended December 2006, revenues stood at Rs 5.18 crore up 115% over corresponding quarter previous year with operating profits up by 521% to Rs 1.01 crore and PAT zooming to Rs 1.08 crore against Rs 9.10 lakh in the corresponding quarter previous year.
  • For the nine months ended December 2006, IT People reported 95% growth in revenues to Rs 11.26 crore with operating profits up at Rs 1.91 crore against Rs 5.60 lakh in corresponding previous period and the PAT at Rs 1.58 crore against loss of Rs 16.25 lakh in the corresponding previous period.