CLEAR SECURED SERVICES LIMITED IPO Explain

Clear Secured Services IPO Overview

Integrated facility management (IFM) & security solutions provider raising ₹85.60 cr via 100% fresh issue of 64.85L shares. Price: ₹125-132. Lot: 1,000 shares (₹2.64L min). Funds for subsidiary equipment (₹5.25 cr), debt repayment (₹35.5 cr), working capital (₹26 cr).

Founded 2008, 17 years old. Services: Security, housekeeping, RnM, infrastructure, telecom, cash van. 4,025 employees, 15 states+2 UTs.

Clients: BFSI, IT/ITeS, telecom, govt.

FY25: ₹476.17 cr revenue (+38%), ₹9.92 cr PAT (-18%).

Anchor: ₹24.4 cr raised.

Lead: Horizon Management. Analyst: “Fully priced”. PAT drop (₹8.44 cr exception), thin margins (2-3%), high working capital stress, customer concentration. Competes with Quess Corp, TeamLease, SIS.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME
IPO Open Date	1 December 2025 (Sunday)
IPO Close Date	3 December 2025 (Tuesday)
Anchor Investor Date	28 November 2025 (Thursday)
Allotment Date	4 December 2025 (Wednesday) – Expected
Credit to Demat	5 December 2025 (Thursday) – Expected
Refund Initiation	5 December 2025 (Thursday) – Expected
Listing Date	8 December 2025 (Monday) – Tentative
Price Band	₹125 – ₹132 per share
Face Value	₹10 per share
Lot Size	1,000 shares
Min Investment (Retail)	₹2,64,000 (2 lots / 2,000 shares at upper band)
sHNI Investment	₹3,96,000 (3 lots / 3,000 shares) minimum
bHNI Investment	₹10,56,000 (8 lots / 8,000 shares) minimum
Issue Size	₹85.60 crore total (at upper band)
Fresh Issue	₹85.60 crore (100% fresh issue)
Offer for Sale (OFS)	NIL
Total Shares Offered	64,85,000 equity shares
Listing	NSE SME (Emerge Platform)
Post-Issue Market Cap	~₹322 crore (at upper price band)
P/E Ratio	~30-35x (FY25 basis – Very expensive!)
EPS	₹3.77-4.00 (range)
Expected Listing Price	₹132-143 (0-8% gains expected)
Anchor Investment	₹24.40 crore raised from anchor investors on Nov 28 (18,48,000 shares – 28.5%)

Issue Break-up

Category	Allocation	Shares	Percentage
QIB (Qualified Institutional Buyers)	30,80,000 shares (ex-anchor: 12,32,000)	47.49% (19% ex-anchor)
NII (Non-Institutional Investors)	9,24,000 shares	14.25%
Retail Individual Investors	21,56,000 shares	33.25%
Anchor Investors	18,48,000 shares	28.50%
Market Maker	3,25,000 shares	5%

Note: Strong anchor allocation (28.50%) with ₹24.40 cr commitment. Standard SME IPO allocation pattern.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹85.60 crore gross / ~₹81-82 cr net) will be used for:

Investment in Wholly Owned Subsidiary – Comfort Techno Services Private Limited for Equipment Purchase – ₹5.25 crore (6.4%)
- Purchasing equipment for subsidiary operations
- Enhancing subsidiary’s operational capabilities
- Technology and machinery upgrades
Repayment/Prepayment of Borrowings – ₹35.50 crore (43.4%)
- Debt reduction from banks and financial institutions
- Outstanding debt: Significant borrowings as of FY25
- Deleveraging and reducing finance costs
- Major focus on debt repayment – indicates high leverage
Funding Working Capital Requirements – ₹26.00 crore (31.8%)
- Day-to-day operations, receivables, inventory management
- High working capital intensity typical of manpower-heavy business
- Supporting longer payment cycles from enterprise/government clients
General Corporate Purposes – Balance amount (~18.4%)
- Strategic initiatives, marketing, contingencies

Strategic Focus:

Heavy focus on debt repayment (43.4%) – indicates over-leverage
Working capital (31.8%) – manpower-intensive business with cash flow challenges
Only 6.4% for capex/equipment – minimal growth investment
Largely a financial restructuring IPO rather than growth-focused

Note: This is a 100% fresh issue with no OFS. All proceeds go to the company.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

Horizon Management Private Limited
Address: 19, R.N. Mukherjee Road, Main Building, 2nd Floor, Kolkata – 700001, West Bengal
Phone: +91 33 4600 0607
Website: www.horizonmanagement.in

Registrar:

Bigshare Services Private Limited
Address: Office No S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, next to Ahura Centre, Andheri East, Mumbai – 400 093, Maharashtra
Phone: +91-22-6263 8200
Website: www.bigshareonline.com

Market Maker:

Choice Equity Broking Private Limited

Promoters & Management

Key Promoters – Dubey Family (4 Promoters):

Mr. Vimal Dhar Lalta Prasad Dubey – Chairman & Managing Director
- Founder who started the company in 2008
- 17 years of industry experience
- Leading the company’s operations and IPO journey
Mr. Rakesh Dhar Dubey – Promoter
- Family member supporting operations
Mrs. Kusum Vimal Dubey – Promoter
- Family member
Mr. Sanjay Dubey – Promoter
- Family member

Company History:

Founded 2008 (Incorporated) – 17 years old
Operations: Integrated Facility Management (IFM) and Support Services
Evolution: From security services to comprehensive IFM solutions provider
Geographic Footprint: Pan-India presence across 15 states and 2 union territories
Workforce: 4,025+ employees as of October 2025 (significant manpower base)
Subsidiary: Comfort Techno Services Private Limited (wholly owned)
Certifications: PSARA license across 11 states for security services
Rating: India Ratings affirmed IND BBB-/Stable outlook

Company Contact:

Registered Office: 14B/4, Ground Floor, Plot-14A/14B, New Sion CHS, Swami Vallanbhdas Marg, Road No 24, Sindhi Colony, Sion, Mumbai – 400022, Maharashtra
Phone: 022-20850085
Website: www.cssindia.in
Workforce: 4,025+ employees

COMPANY OVERVIEW

Establishment & Background:

Incorporated in 2008 (17 years old)
Industry: Integrated Facility Management (IFM) & Business Support Services
Headquartered in Mumbai, Maharashtra
Workforce: 4,025+ employees as of October 2025 (large manpower-intensive operations)
Pan-India presence: 15 states and 2 union territories
Client Base: 80+ clients (as of October 2025), 117 active customers (as of August 31, 2025)
Rating: India Ratings IND BBB-/Stable

Business Model:

Nationwide Integrated Facility Management & Security Solutions Provider
Two Core Business Segments:
1. Integrated Facility Management (IFM) – 51% of FY25 revenue (₹244.09 cr)
  - Soft Services:
    - Housekeeping & deep cleaning
    - Security services (PSARA licensed in 11 states) – manned guarding, e-surveillance
    - Staffing & payroll management
    - Payment management support
    - Waste collection & sanitation
  - Hard Services:
    - Electro-mechanical repairs & maintenance (RnM)
    - Facade cleaning
    - Pest control services
2. Support & Allied Services – 49% of FY25 revenue (₹232.08 cr)
  - Total Infrastructure Solutions (TIS): Interior design, fire safety, plumbing, office furniture & fittings, electrical work (contributed ₹60.99 cr in FY25)
  - Telecom Infrastructure Solutions: Site survey, tower erection, electrical integration for telecom operators (₹3.69 cr in FY25)
  - Cash Van Operations: Secure cash logistics for ATMs and BFSI clients
  - Agro Food Trading: Sourcing and trading of millets and wheat (shifted to subsidiary in FY26)
  - Business Support Services: Administrative outsourcing, on-site operations via subsidiary Comfort Techno Services
Target Industries:

BFSI: Banks, insurance, financial services
IT/ITeS: Technology companies, BPOs, KPOs
Telecom: Mobile operators, telecom service providers
Government: Public sector undertakings, government departments
Real Estate: Commercial real estate, office complexes
Oil & Gas: Energy sector facilities
Retail: Shopping malls, retail chains
Service Delivery Model:

Direct employment of workforce (4,025+ employees) – minimizing subcontracting
Ensures uniform service standards and quality control
On-ground execution teams across multiple states
Long-term annuity-style client relationships
Bundled multi-service contracts for client retention
Revenue Model:

Recurring revenue from IFM contracts (security, housekeeping, AMC)
Project-based revenue from infrastructure solutions
Mix of government and private sector clients

Market Position:

Positioned as integrated IFM solutions provider in growing ₹98,080 crore Indian IFM market (FY23)
Market projected to grow at 14.6% CAGR till FY28
Competing with larger players: Quess Corp (₹20,000+ cr revenue), TeamLease Services, SIS Limited, ISS Facility Services
Niche player with pan-India footprint serving 80+ clients
Strong government relationships alongside corporate clients

Operations:

Headquarters: Mumbai, Maharashtra (Sion)
Workforce: 4,025+ employees (October 2025) – large manpower base
Geographic Coverage: 15 states + 2 union territories
Client Locations: 17 customer locations across India
Certifications: PSARA security license in 11 states
Rating: India Ratings IND BBB-/Stable outlook
Subsidiary: Comfort Techno Services Private Limited (CTSPL) for business support services

Company Strengths

Strong Revenue Growth – Revenue +38% (FY24 to FY25):
- FY25 revenue: ₹476.17 cr (+38% vs ₹345.37 cr FY24)
- Three-year revenue trajectory: ₹309.04 cr (FY23) → ₹345.37 cr (FY24) → ₹476.17 cr (FY25)
- CAGR of ~15.5% over FY23-FY25
- Demonstrates strong demand for IFM services
- Consistent top-line growth across economic cycles
Massive Anchor Support – ₹24.40 Cr Raised (28.5% of Issue):
- Very significant institutional backing with ₹24.40 crore anchor investment
- 18,48,000 shares subscribed by anchors (28.5% allocation)
- One of the highest anchor commitments in recent SME IPOs
- Validates company fundamentals and growth potential
- Provides stability and reduces under-subscription risk
Diversified Service Portfolio – One-Stop IFM Solutions:
- Comprehensive offerings spanning IFM (51%) and Support Services (49%)
- Both soft services (housekeeping, security, staffing) and hard services (RnM, pest control)
- Infrastructure solutions, telecom support, cash van logistics
- Multi-service bundling enhances client retention and margins
- Reduces dependency on single service vertical
- Cross-selling opportunities across client base
Large Workforce – 4,025+ Direct Employees:
- Significant operational scale with 4,025+ employees (October 2025)
- Direct employment model (minimizing subcontracting) ensures quality control
- Uniform service standards across locations
- Ability to execute large enterprise and government contracts
- Workforce size enables pan-India project delivery
Pan-India Presence – 15 States + 2 UTs Coverage:
- Nationwide footprint across 15 states and 2 union territories
- Enables servicing of pan-India clients with single-vendor convenience
- Strong on-ground execution teams in multiple regions
- Geographic diversification reduces regional risk
- Proximity to clients enhances service quality and response time
Growing IFM Market – 14.6% CAGR Industry Tailwind:
- Indian IFM market: ₹98,080 crore (FY23) projected to grow at 14.6% CAGR till FY28
- Structural shift towards outsourcing of facility management
- Rising ESG adoption driving professional facility management demand
- Services-led Indian economy growing (54.7% GVA contribution in FY24)
- Government and private sector increasingly outsourcing non-core functions
Long-Standing Client Relationships – Repeat Business Model:
- Serving 80+ clients across multiple industries
- 117 active customers as of August 31, 2025
- Long-term annuity-style relationships indicating client satisfaction
- Repeat business and contract renewals provide revenue stability
- Mix of government and corporate clients for diversification
India Ratings Affirmed IND BBB-/Stable – Credit Credibility:
- India Ratings and Research affirmed IND BBB-/Stable outlook
- Investment-grade credit rating demonstrates financial stability
- Enhances ability to secure contracts (especially government tenders)
- Easier access to debt financing for working capital
- Credibility with enterprise clients

Key Risks & Challenges

PAT Decline Despite Revenue Growth – 18% PAT Drop in FY25!:
- Critical Concern: Revenue +38% but PAT -18% (₹12.08 cr FY24 → ₹9.92 cr FY25)
- Analyst Dilip Davda notes: “It marked setback for bottom line in FY25 following one time exception item of Rs. 8.44 cr“
- One-time exceptional expense of ₹8.44 crore (69% of FY24 PAT!) severely impacted profitability
- Nature of exceptional item unclear – regulatory penalty? Bad debt write-off? Settlement?
- PAT margin collapsed: 3.5% (FY24) → 2.08% (FY25) – very thin margins
- Questions about operational efficiency and cost management
- Risk of future exceptional items or margin pressure
“Fully Priced” Valuation – Analyst Warns Limited Upside:
- Analyst Dilip Davda verdict: “Based on recent financial data; the issue appears fully priced“
- P/E of 30-35x (FY25 basis) – extremely expensive for low-margin manpower business!
- IFM/security services typically trade at 10-20x P/E
- Comparable Quess Corp trades at ~15-18x despite much larger scale
- PAT declining and margins thin (2-3%) doesn’t justify premium valuation
- Limited margin of safety at current pricing
Very Weak GMP (₹0-11) – Minimal Market Enthusiasm:
- GMP of ₹0-11 (0-8.3% premium) as of Nov 27-Dec 1 – very weak
- High of ₹11 on Nov 27, low of ₹0-6 on Nov 28-Dec 1
- Expected listing gains only 0-8% – minimal upside
- Despite massive ₹24.4 cr anchor investment, grey market lukewarm
- Indicates retail skepticism about fundamentals and pricing
- Risk of flat or negative listing
Extremely Thin Profit Margins – 2-3% PAT Margin!:
- PAT margin: 3.5% (FY24) → 2.08% (FY25) – razor-thin profitability
- Analyst warning: “Only 2–3% Profit Margin”
- Manpower-intensive business with limited pricing power
- High employee costs (4,025+ employees)
- Competitive bidding (especially government contracts) compresses margins
- Small margin for error – any cost overrun = losses
- Cannot absorb wage inflation or economic downturns
- Comparable Quess Corp has 2-3% EBITDA margins – structural issue in IFM sector
High Working Capital Stress – ₹26 Cr (31.8%) for WC:
- Analyst concern: “High Working Capital Stress”
- ₹26 crore (31.8% of IPO) allocated to working capital – major red flag
- Indicates severe cash flow strain
- Government/enterprise clients have long payment cycles (90-180 days)
- Manpower costs paid monthly but receivables delayed
- Continuous liquidity requirements
- May need future fundraising if working capital blockage worsens
Heavy Debt Burden – 43.4% of IPO for Debt Repayment:
- ₹35.5 crore (43.4% of IPO) allocated to debt repayment
- Indicates significant over-leverage
- Finance costs impacting profitability
- Even post-IPO, likely substantial debt remains
- Continuous debt servicing burden
- Failure to service debt = operational disruption
Customer Concentration Risk – Government/Enterprise Dependency:
- Serving 80 clients across India, but likely high concentration in top 10-20
- Government contracts subject to renewal risk, policy changes, political factors
- Loss of 1-2 major clients (BFSI, telecom, government PSUs) = severe revenue impact
- Project-based business – no guaranteed recurring revenue
- Client bargaining power high due to competitive bidding
Intense Competition – Fighting Giants with 100x Scale:
- Competing with behemoths:
  - Quess Corp: ₹20,000+ cr revenue (40x larger!)
  - TeamLease Services: ₹5,000+ cr revenue
  - SIS Limited: ₹4,000+ cr revenue
  - ISS Facility Services: Global giant with massive scale
- Plus hundreds of regional IFM/security services providers
- Price-based competition (especially government tenders) eroding margins
- Large players have economies of scale Clear Secured cannot match
- Difficult to differentiate in commoditized services
Manpower-Intensive Model – Attrition & Wage Inflation Risk:
- Business model dependent on 4,025+ employees
- IFM/security sector has high attrition (20-30% annual)
- Continuous hiring, training costs
- Wage inflation pressure – government mandated minimum wage hikes
- Limited ability to pass on cost increases due to competitive bidding
- Labor disputes, strikes can disrupt operations
- Difficulty scaling while maintaining quality
Legal Proceedings Risk – Ongoing Litigations:

Ongoing legal proceedings involving company, promoters, subsidiaries
Nature and quantum of litigations unclear
Potential financial liabilities and reputational damage
Distraction for management from core business
Legal costs impacting profitability

Government Contract Dependency – Policy & Payment Risk:

Significant portion of revenue likely from government clients
Government payment delays (90-180+ days) worsen working capital
Contract renewals subject to political and policy changes
Tender process unpredictable and highly competitive
Budget cuts can lead to contract cancellations
Difficulty recovering dues from government entities

Exceptional Item Concerns – ₹8.44 Cr Hit in FY25:

₹8.44 crore exceptional expense in FY25 (69% of prior year PAT!)
Nature of exceptional item not fully transparent
Risk of future one-time charges
Indicates potential operational, compliance, or financial issues
Investors should scrutinize RHP for details

CRITICAL CONCERNS: Analyst Dilip Davda warns issue is “fully priced” and recommends “Well-informed investors may park funds for medium to long term” (cautious stance). Revenue +38% but PAT -18% in FY25 due to ₹8.44 cr exceptional expense (69% of FY24 PAT!). Extremely thin profit margins (2-3%), high working capital stress (₹26 cr or 31.8% IPO for WC), heavy debt (₹35.5 cr or 43.4% for repayment). Very weak GMP (₹0-11, 0-8%). Expensive valuation (P/E 30-35x for low-margin business). Competing with Quess Corp (40x larger), TeamLease, SIS. Manpower-intensive model with 4,025+ employees.

Disclaimer: This information is based on publicly available sources including SEBI RHP filings, analyst reports, and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. SME investments carry higher risks than mainboard listings.