Company Overview

Stalwart People Services India Limited is an integrated service provider operating across three main business segments: Security Services (62.62% of revenue as of 9M FY26), Facilities Management Services (15.85%), and Staffing Solutions (21.53%). The company has operated for over 22 years, serving 1,099 customers across aviation, banking, healthcare, IT/ITeS, education, infrastructure, logistics, manufacturing, retail, and tourism sectors. With pan-India presence and international operations in UAE, the company employs 25,070 personnel including 527 corporate operations staff, 23,854 on-site employees, and 689 apprentices.

Subsidiaries: The company operates through Stalwart Intellisense Private Limited (AI-based video surveillance platform with 3,200 video feeds) and Stalwart Facility and Security Services L.L.C (UAE operations). It also has an associate, Almuftah Stalwart Facilities Management Co, classified as 'asset held for sale'.

Offer Details

IPO Structure: The Initial Public Offering comprises a Fresh Issue of up to [●] Equity Shares aggregating up to ₹1,500 million and an Offer for Sale of up to 5,264,151 Equity Shares by promoter selling shareholders. The face value is ₹5 per share after a 1:2 stock split and 30:1 bonus issue.

Objects of the Issue: Proceeds will be utilized for working capital requirements (₹650-1,050 million), prepayment/repayment of borrowings (₹300-400 million), and general corporate purposes. A pre-IPO placement of up to ₹225 million may be considered, which would reduce the fresh issue size accordingly.

Listing: Equity shares will be listed on both BSE and NSE exchanges, with Bajaj Capital Securities as sole book running lead manager and KFin Technologies as registrar.

Financial Performance

Revenue Growth: The company has demonstrated strong financial performance with revenue growing from ₹1,825.71 million in FY23 to ₹4,744.98 million for 9M FY26, representing consistent expansion across all business segments.

Profitability: Profit After Tax increased from ₹94.53 million in FY23 to ₹228.35 million for 9M FY26, with EBITDA growing from ₹129.63 million to ₹267.16 million over the same period. Return on Net Worth stood at 21.79% for 9M FY26.

Capital Structure: Pre-Offer paid-up capital is ₹279 million consisting of 55,800,000 Equity Shares, with promoters holding 99.57%. Employee benefit expenses constituted 87.62% of revenue from operations for 9M FY26, reflecting the labor-intensive nature of the business.

Risk Factors

Business Risks: The company faces significant customer concentration risk (top 10 customers contributed 35.67% of revenue), regional concentration (78.30% revenue from South India), high employee attrition rates (41.87% for corporate operations, 61.78% for on-site employees), and intense competition in fragmented markets with approximately 500 companies in facilities management services.

Financial Risks: Working capital intensive operations with outstanding borrowings of ₹890.32 million as of June 15, 2026, and foreign currency exchange rate exposure from UAE operations.

Regulatory Risks: Compliance with multiple labor legislations, PSARA licensing requirements, pending service tax dispute of ₹15.25-16.94 million relating to denial of exemption on services provided to SEZ units, and implementation of Labour Codes that may increase compliance costs.

Market & Industry Outlook

Industry Growth: According to Frost & Sullivan Report (June 2026), the Indian staffing services market is projected to grow from ₹1,161.3 billion in FY26 to ₹2,877.0 billion by FY31 (19.9% CAGR), while security services market is expected to grow at 11.6% CAGR to ₹3,067.6 billion by FY31, and facility management services at 12.7% CAGR.

Competitive Landscape: The company competes with established players including SIS Limited, G4S Secure Solutions, TeamLease Services Limited, Updater Services Limited, and Kapston Services Limited in highly fragmented markets with low barriers to entry.

Growth Drivers: Market expansion is driven by increasing outsourcing trends, growth in commercial real estate, healthcare and manufacturing sectors, government sector outsourcing, technological evolution in service delivery, and formalization of workforce.

Management & Corporate Governance

Promoters: Christopher Arvinth (Chairman and Managing Director, 74.85% pre-Offer holding) and Caroline Mendez (Whole-Time Director and CEO, 24.72% pre-Offer holding) are the founding promoters with extensive industry experience.

Board Composition: The company has constituted a 7-member board with 4 independent directors and all mandatory committees including Audit, Nomination and Remuneration, Stakeholders' Relationship, CSR, and Risk Management committees.

ESOP Scheme: The company has approved Stalwart People Services Employee Stock Option Plan 2025 for issue of options up to 352,036 Equity Shares, with 66,960 options granted as of date.

Legal & Compliance Status

Ongoing Proceedings: Service tax dispute of ₹15.25-16.94 million relating to denial of exemption on services provided to SEZ units for FY2010-11 to 2013-14, with appeal pending before Commissioner of GST & Central Excise.

Regulatory Approvals: The offer requires SEBI approval (final observation letter), in-principle listing approvals from BSE and NSE, and compliance with SEBI ICDR Regulations minimum public shareholding norms. The company maintains various PSARA licenses across states and other statutory registrations.

Corporate Identity: Registered Office in Chennai, Corporate Office in Coimbatore, with 23 regional offices across India and international office in Dubai. CIN: U74920TN2003PLC158097.