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Exclusive: Hands-On Management Services in advanced talks for majority stake sale

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Mumbai-based integrated facility management company Hands-On Management Services Pvt. Ltd is in late stages of discussion with investors to sell a majority stake, a top company executive told VCCircle.

“The present management of Hands-On is in the advanced stages of a strategic tie-up with potential investors to expand company operations,” said a company spokesperson.

Hands-On was founded in 2012 by Manindra Kumar, Deepa Hegde and Jyoti Jagtap. Kumar, who also founded executive search firm Recruitment World, said he will completely exit Hands-On by selling his stake to Nitin Chandak, a senior executive at a private bank. While Chandak will acquire majority stake, the other two co-founders will retain a minority share.

Currently, present in Maharashtra and Gujarat, the acquisition will help Hands-On expand its presence pan India.

“We have built a strong base for Hands-On. Nitin is passionate about Hands-On and will take the company to the next level,” Kumar said.

The company has around 200 employees and is expecting to report revenue of Rs 3 crore in FY2016-17.

The facility management space has seen several deals in the last couple of years.

Last month, Chennai-based integrated facilities management services firm Updater Services Pvt. Ltd (UDS) raised Rs 100 crore (around $15 million) from MOPE Investment Advisors Pvt. Ltd in return for a minority stake.

In January, India's second-largest private security services firm, Security and Intelligence Services (India) Ltd (SIS) received regulatory approval for an initial public offering (IPO). 

It also acquired facility management company Dusters Total Solutions Services Ltd (DTSS). Private equity firm TVS Capital, which owns 51% stake in DTSS, is expected to get around Rs 115 crore ($17.4 million).

According to research and consulting firm Frost & Sullivan, the segment is expected to grow from Rs 8,414.7 crore in 2015 to around Rs 20,000 crore by 2019.

The article has been updated to reflect that the deal is in advanced stages of discussions and hasn't closed as previously reported.

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