Happy Square Outsourcing shares list at 1% premium over IPO price

HR tech firm Happy Square Outsourcing Services debuted on the NSE SME platform on Thursday at Rs 77, registering a muted premium of Re 1 or 1.3% over its issue price of Rs 76. The listing came after the successful closure of its Rs 24.25 crore IPO earlier this week. The issue, consisting entirely of a fresh offering of 31.9 lakh equity shares, received decent investor interest with an overall subscription of 3.58 times.

Just ahead of the listing, market chatter indicated a grey market premium (GMP) of around 7%, suggesting an expected listing price in the range of Rs 81 to Rs 82. The relatively strong GMP, along with decent subscription across investor categories—2.12 times in retail, 2.24 times in NII, and 7.16 times in QIB—reflected stable demand ahead of the debut. However, the stock listed below GMP expectations.

Incorporated in 2017, Happy Square is engaged in technology-driven HR outsourcing solutions including recruitment, payroll, onboarding, and flexible staffing.


With operations in both India and the US, the company had 4,225 personnel deployed on client sites as of July 2024, supported by a core team of 151 employees. Its client-centric, scalable model and ISO 9001:2015 certification have helped it carve a niche in the fragmented staffing and consulting space.

Financially, the company has shown a healthy growth trajectory. Revenue rose 40% year-on-year in FY25 to Rs 97.68 crore, while profit after tax jumped 34% to Rs 5.90 crore.

The IPO proceeds are primarily being directed towards working capital needs (Rs 19 crore). The lead manager for the issue was Corpwis Advisors, while Giriraj Stock Broking acted as market maker. Purva Sharegistry handled registrar duties.

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