PAN HR Solution IPO: A Micro-Cap Staffing Powerhouse Hits the Market
PAN HR Solution Limited, a specialized B2B manpower provider with over 10,000 personnel deployed nationwide, has launched its ₹17.04 crore SME IPO. With a price band of ₹74 to ₹78, this blog analyzes the company’s transition to a high-margin "Pay and Collect" model, its 99% revenue dependency on top clients, and the current flat GMP status.
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1. Who is PAN HR Solution Limited?
Incorporated in 2015 and headquartered in Noida, PAN HR Solution is an end-to-end human resource and staffing firm. They specialize in managing a large "blue-collar" workforce for industries that require massive scale, such as e-commerce, logistics, and manufacturing.
Core Services:
Manpower & Staffing: Specialized in sourcing unskilled to skilled labor (delivery partners, warehouse staff).
Facility Management: Providing housekeeping, pantry boys, and office assistants.
Compliance & Payroll: Managing statutory requirements like PF, ESIC, and GST for thousands of employees.
Key Recognition: The company has been twice awarded as the #1 City Logistics Partner by Flipkart, showcasing its deep integration with major e-commerce players.
2. Key IPO Details & Timeline
The IPO is currently open and is a combination of a Fresh Issue (₹14.04 Cr) and an Offer for Sale (₹3.00 Cr).
| Event / Detail | Status / Date |
|---|---|
| Bidding Period | Feb 6 – Tuesday, Feb 10, 2026 |
| Price Band | ₹74 to ₹78 per share |
| Lot Size | 1,600 Shares |
| Retail Min Investment | ₹1,24,800 (1 Lot / 1,600 shares) |
| Total Issue Size | ₹17.04 Crore |
| Listing At | BSE SME |
| Allotment Date | Wednesday, February 11, 2026 |
| Listing Date | Friday, February 13, 2026 |
3. Financial Snapshot: Steady Growth & Lean Margins
The company has shown consistent improvement in its profitability, though it operates in a high-volume, low-margin industry:
Revenue: Stable growth from ₹256 Cr (FY23) to ₹283.7 Cr (FY25).
Profit After Tax (PAT): Increased from ₹3.88 Cr (FY23) to ₹5.02 Cr (FY25).
H1 FY26 Momentum: In just the first 8 months of the current year (ending Nov 2025), they have already surpassed last year's profit, reporting ₹5.13 Cr.
Efficiency: Boasts a strong ROE of 30.8% and ROCE of 43%, reflecting excellent management of their capital.
4. The "Pay and Collect" Strategic Shift
Currently, the company uses a "Collect and Pay" model (billing the client first, then paying staff).
The New Goal: They are using ₹9.75 crore of the IPO proceeds to shift toward a "Pay and Collect" model.
The Benefit: By paying workers upfront, they can attract better talent and demand higher premiums from clients, potentially boosting their currently slim PAT margins of ~1.7%.
5. Grey Market Premium (GMP) & Valuation
As of February 6, 2026, the GMP for PAN HR Solution is ₹0.
Market Sentiment: A flat GMP suggests the market is waiting to see the final day subscription numbers.
Valuation: The issue is priced at a P/E of 11.2x (based on FY25) and a very attractive 7.3x (annualized FY26). Compared to peers like Spectrum Talent (P/E 24x), PAN HR is priced quite reasonably.
6. Risks to Watch
Customer Concentration: Nearly 99% of revenue comes from their top 10 customers. Losing a single large client like Flipkart could be critical.
Regulatory Risk: Frequent changes in Indian labor laws and statutory dues can directly impact the cost of operations.
Negative Cash Flow: The company has seen negative operating cash flow in some years due to heavy working capital needs.
7. Conclusion: A Value-Priced Small-Cap Bet
PAN HR Solution is a fundamental play on India's booming gig economy and e-commerce logistics. While the flat GMP might discourage short-term "flippers," the attractive valuation and solid ROE make it an interesting long-term prospect for investors who believe in the scaling of India's service sector.