📌 At a Glance

White Force (aka Happy Square Outsourcing Services Ltd) is raising ₹24.25 Cr via a fresh issue on NSE SME. Focused on HR outsourcing — from hiring to payroll to onboarding — this Madhya Pradesh-based tech-HR firm grew fast post-COVID. With EBITDA margins just under 10%, and PAT margin at 6%, the IPO is priced at a P/E of 14.9x post-issue. Hype or hustle? Let’s dissect.

1. 👷 WTF Do They Even Do?

White Force is a tech-enabled HR outsourcing company that offers:

• Recruitment (Biryani resumes from Naukri)
• Payroll Management (Excel + Tally = 💥)
• Onboarding & Staffing (Throwing resumes until someone sticks)

They operate in both India and the US (yep, offshore HR support), and have:

• 4,225 personnel deployed on client sites
• 151 internal staff as of July 2024
• ISO 9001:2015 certification to sound fancy

Their real business? Labour contractor meets HRTech with a Jabalpur zip code.

2. 📈 Financials – Show Me the CTC, Bro

🧠 TL;DR

• 40% YoY revenue growth ✅
• PAT up 34% — but remains single digit margins
• Leverage rising fast (Debt up 2.5x in 2 years)
• ROE at 61.97% = Looks fab, but heavily debt-fueled

3. 💰 Valuation – Is It Reasonable or “HR-ruption”?

Market Cap = ₹88.16 Cr

• FY25 PAT = ₹5.9 Cr
• Post-Issue EPS = ₹5.09
• P/E = ~14.93x
• Price/BV = ~5.1x

💡 SME IPOs often command 10–20x P/E ranges.

But this is a labour-sourcing company. It isn’t SaaS, it isn’t IP-led, and it isn’t sticky.

👉 EduInvesting FV Range™ = ₹58 – ₹66 per share
(Assuming 10x–13x sustainable P/E band for current profit trajectory)

4. 🧠 What’s Cooking?

• Raised ₹6.6 Cr from anchor investors (always a flex in SME IPOs)
• Used that clout to build early momentum — but Day 2 subscription only 0.59x
• FY24/FY25 profits surged = red flag or inflection point? 🤔
• Says it operates in the US market — but how scalable is that, really?

🚨 Skeptics would say: “Profit boost before IPO smells like CV polishing.”

5. 🧾 Balance Sheet – Startup Mode or Sustainable?

• Net Worth: ₹12.48 Cr
• Total Borrowings: ₹14.59 Cr
• Debt/Equity = 1.17x → High for a service-based firm
• No dividend — expected, it’s SME mode

🚨 They’re using ₹19 Cr of IPO just for working capital — not tech, not infra.

Translation: They need cash to survive scale, not build IP.

6. 💸 Cash Flow – Burn or Earn?

Full cash flow statement isn’t detailed in RHP, but here’s what we infer:

• High EBITDA = likely positive operational cash flows
• Rising receivables from corporate clients may delay real collections
• No material capex planned
• Financing cash flow may go up post IPO

Verdict: No red flags, but not a cash cow either.

7. 📐 Ratios – Are the Numbers Hot or Hired?

This isn’t a recurring SaaS model. It’s a contractor model. So, these ratios look hot, but sustainability is a big IF.

8. 🧑‍💼 Shareholding – Promoters Taking a Backseat?

• Pre-Issue Promoter Holding: 84.00%
• Post-Issue Promoter Holding: 60.89%

✅ No OFS here — all money comes into the company
But the equity dilution is large (28%) — indicating IPO was needed, not optional.

9. 🧑‍⚖️ EduInvesting Verdict™

“White Force is a promising HR outsourcing firm… but it’s also a recruitment agency in SME disguise.”

Pros:

• Revenue/PAT growth ✅
• Anchor interest ✅
• End-to-end HR play across India + US ✅

Cons:

• PAT margins under 7%
• High debt
• High dilution
• Boosted profits just before IPO = 🤨

🎯 Fair Value Range: ₹58 – ₹66 per share
📦 IPO Price Band: ₹72 – ₹76
🤷 Fully priced, with fragile subscription.

👉 SME IPO investors may want to wait till listing pop fizzles — or till resumes stop being polished only around RHP season.

✍️ Written by Prashant | 📅 July 7, 2025

Tags: White Force IPO, HR outsourcing IPO, NSE SME IPO, Happy Square Outsourcing IPO, Corpwis Advisors IPO, IPO Analysis, SME Stocks, EduInvesting Review, Labour Tech India