🧐 At a Glance
White Force (Happy Square Outsourcing) is bringing a ₹24.25 Cr SME IPO with a solid 62% ROE, rapid profit growth, and a scalable HR outsourcing model across India and the US. But will this recruitment firm attract listing gains… or regret letters?
1. 🪝 Introduction with Hook
HR tech startup. SME IPO. ROE of 61.97%.
Wait… what? How did your office’s recruitment agency suddenly become a high-margin machine? Well, White Force isn’t just hiring interns and mispronouncing names on onboarding calls. It’s now a ₹88 Cr valuation SME firm trying to IPO at a P/E of ~15x — and hopes you’ll say “yes” without an HR round.
But should you click “Apply”?
2. 🧳 Business Model (WTF Do They Even Do?)
White Force is the brand name for Happy Square Outsourcing Services Ltd, which is:
✅ An ISO-certified HR outsourcing company
✅ Doing recruitment, payroll, onboarding, and staffing
✅ Active in India + US, with 4,225 deployed personnel
✅ Employing a “third-party HR plug-in” model: clients outsource workforce ops to them
✅ Tech-based workflow, but not full SaaS – still service-heavy
Also, they’re not shy about scale:
They claim to work with diversified industrial verticals, from IT to logistics, and target both long-term contracts and temp staffing.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
Let’s skip HR jargon and get to HR money:
| Metric | FY23 | FY24 | FY25 | Growth FY25 YoY |
|---|---|---|---|---|
| Revenue (₹ Cr) | 52.80 | 69.54 | 97.68 | +40% |
| EBITDA (₹ Cr) | 2.85 | 6.64 | 9.45 | +42% |
| PAT (₹ Cr) | 1.79 | 4.39 | 5.90 | +34% |
| Net Worth (₹ Cr) | 2.14 | 6.57 | 12.48 | +90% |
| ROE (%) | — | — | 61.97% | 🚀 |
| ROCE (%) | — | — | 57.75% | 🚀 |
| PAT Margin (%) | — | — | 6.06% | Decent for services |
Verdict: 🔥 High profitability, strong return ratios, and consistent growth.
4. 🧮 Valuation – Is It Cheap, Meh, or Crack?
White Force IPO is priced at a band of ₹72 to ₹76. Let’s math it out.
📌 Key Valuation Metrics
| Metric | Pre-IPO EPS | Post-IPO EPS | P/E (Post IPO) | P/BV |
|---|---|---|---|---|
| FY25 EPS | ₹7.02 | ₹5.09 | ~14.93x | 5.12x |
| FY25 Net Worth | ₹12.48 Cr | ₹12.48 Cr | — | — |
| Market Cap (Post IPO) | ₹88.16 Cr |
🎯 Fair Value Range
Assuming conservative 20% CAGR for 3 years and 20x exit multiple:
- Base FV (FY25 EPS ₹5.09 × 18–22x): ₹92 – ₹112
- Long-term FV (FY27 EPS ₹8–₹9 × 18x): ₹144–₹162
At IPO price of ₹76, this is not overpriced, just fairly warm.
5. 🍿 What’s Cooking – News, Triggers, Drama
White Force’s recent moves:
- Raised ₹6.6 Cr from anchor investors
- Market maker: Giriraj Stock Broking (NSE SME)
- Strong industry demand in India + US for temp workforce
- Can benefit from India’s rising gig + staffing economy
- Upcoming listing on July 10, 2025
But keep in mind:
- No major clients disclosed
- No real-tech IP, just tech-enabled ops
- Fully fresh issue – no promoter exit, which is a good sign
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Borrowing | ₹14.59 Cr |
| Debt/Equity | 1.17x |
| Net Worth | ₹12.48 Cr |
| Reserves | ₹12.47 Cr |
Not alarming, but debt is moderate – this isn’t zero-debt nirvana.
7. 💸 Cash Flow – Sab Number Game Hai
There’s no breakdown in RHP of exact operating vs investing cash flow. But clues:
- Net profit has grown steadily → Operating cash flow likely positive
- Capex light business → low investing outflow
- Fresh issue use: ₹19 Cr for working capital = growth-oriented use
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value | Comment |
|---|---|---|
| ROE | 61.97% | 💪 Extremely strong |
| ROCE | 57.75% | 💪 Ditto |
| PAT Margin | 6.06% | Okay for staffing biz |
| EBITDA Margin | 9.70% | Solid for HR services |
| P/E | 14.93x | Mid-range for SME IPOs |
| P/B | 5.12x | Slightly rich |
| D/E | 1.17 | Medium risk |
9. 📈 P&L Breakdown – Show Me the Money
This isn’t just top-line growth. White Force shows clear margin expansion too:
- FY23 → FY24 EBITDA Margin: 5.4% → 9.6%
- FY24 → FY25 PAT: ₹4.39 Cr → ₹5.90 Cr
- Rising EPS despite dilution
That’s a business growing with profit discipline, not just revenue hustle.
10. ⚔️ Peer Comparison – Who Else in the Game?
| Company | Revenue (₹ Cr) | ROE (%) | P/E | Listed |
|---|---|---|---|---|
| Quess Corp | ~17,000+ | 10–12% | ~25x | NSE |
| TeamLease Services | ~8,000+ | ~8–10% | ~30x | NSE |
| White Force (Happy Sq.) | ~98 | 61.97% | 14.9x | NSE SME |
🤯 ROE beats the big boys.
But size, brand, and client base? Not even close yet.
11. 👨👩👧👦 Miscellaneous – Shareholding, Promoters
| Promoters | Holding Pre IPO | Holding Post IPO |
|---|---|---|
| Shraddha & Nalini Rajpal | 84.00% | 60.89% |
No OFS, no dilution by exit.
Good governance signal.
Also noteworthy:
- IPO Registrar: Purva Sharegistry
- Lead Manager: Corpwis Advisors (decent track record)
- Anchor Lock-in Ends: Aug 7 (50%), Oct 6 (rest)
12. 🎤 EduInvesting Verdict™
“If HR called you for ₹121,600 job, you’d hang up. But at ₹121,600 investment? Might be worth interviewing.”
✅ High ROE/ROCE
✅ Solid 3-year financial trajectory
✅ Reasonable valuation for FY25 numbers
⚠️ Moderate debt, no large client info
⚠️ SME listing + low liquidity
🎯 EduFair Value Range: ₹92 – ₹112
(Assumes ~18–22x FY25 EPS of ₹5.09)
✍️ Written by Prashant | 📅 June 30, 2025
Tags: White Force IPO, HR outsourcing IPO, SME IPO July 2025, White Force Valuation, Happy Square Outsourcing, EduInvesting IPO Review
