Beacon Trusteeship Ltd IPO: Review, Valuation, Date & GMP

Beacon Trusteeship Limited IPO - Complete Overview

Founded in 2015, Beacon Trusteeship Limited provides a wide range of trusteeship services across various sectors, including Debenture Trustee Services, Security Trustee Services, Trustee to Alternate Investment Funds (AIF), Trustee to ESOP, Securitization Trustee, Bond Trusteeship Services, Escrow Services, Safe Keeping, and other allied services.

The company acts as an intermediary between issuer companies or entities and investors, offering comprehensive trusteeship services. It is certified by ISO/IEC 27001:2022. 

Recently, the company expanded its presence by opening a business office at Gujarat International Finance Tec-City (GIFT), an International Financial Services Centre. 

Beacon Trusteeship Limited has a presence in over 15 cities across India, including major cities like Mumbai, Delhi, Chennai, Hyderabad, Jaipur, Bangalore, Chandigarh, Indore, Kolkata, Lucknow, and Gandhinagar, through regional offices or signatories.

The company ensures due diligence and periodic monitoring, complying with SEBI (Debenture Trustee) Regulations, 1993, SEBI (Issue and Listing of Non-Convertible Securities) Regulations, SEBI LODR Regulations, and other relevant circulars and guidelines.

Beacon Trusteeship Limited provides the following services:

Debenture Trusteeship: The company enters into formal agreements with issuer companies seeking to issue debentures of any type, including Non-Convertible Debentures.

Security Trustee for Loans: The company assists with appointing an investment manager, holding trust funds for beneficiaries, applying for a registration certificate with SEBI, maintaining books of accounts, and ensuring confidentiality.

Alternative Investment Funds: The company ensures timely declarations and disbursements to investors, makes investments in accordance with agreements, segregates assets, and ensures all transactions are properly accounted for.

Securitization and Escrow: The company handles drafting and vetting Escrow Agreements, setting up the Escrow mechanism, providing adept documentation, ensuring smooth fund flow to and from the Escrow Account, meticulously adhering to covenants and terms of the Escrow Agreement, monitoring fund movements, and maintaining the Debt Service Reserve Amount.

 

Beacon Trusteeship Limited IPO Overview

Beacon Trusteeship Limited IPO date is slated to be open for subscription from May 28, 2024, to May 30, 2024. This is an NSE SME IPO and it follows a Book Built Issue IPO.

Beacon Trusteeship Limited IPO price is fixed in the range of Rs.57 to Rs.60 per share. 

The total issue size of this IPO amounts to Rs.32.52 Cr. The company has allocated 35% shares to retail investors, 50% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Beacon Trusteeship Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has also increased.

Amount in Lakhs

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,696.56	2,254.30	1,685.14
Total Revenue	2,091.20	1,572.36	1,049.02
PAT	516.36	384.64	361.58
Net worth	1,916.29	1,399.53	1,016.53
Reserve & Surplus	498.24	1,099.19	714.55

 

Revenue-wise Break up

(Amount in Lakhs)

Particulars	30-Mar-24	31-Mar-23	31-Mar-22
Alternate Investment Fund	194.10	167.9	137.74
Bond Trustee	19.02	16.88	14.45
Debenture Trustee	917.24	830.62	601.65
Escrow Agent	91.21	46.51	37.37
Other services	14.47	37.17	10.00
Security Trustee	501.42	205.47	91.21
Securitization	254.11	176.01	110.48
Total	1,991.56	1,480.56	1,002.90

 

Geography-wise Revenue Break up

(Amount in Lakhs)

Particulars	30-Mar-24	31-Mar-23	31-Mar-22
Himachal Pradesh	3.62	4.73	2.24
Punjab	5.94	4.69	3.24
Chandigarh	-	-	0.06
Uttarakhand	5.19	-	-
Haryana	52.83	37.77	32.39
Delhi	109.01	99.21	116.07
Rajasthan	16.91	18.32	16.12
Uttar Pradesh	36.82	30.80	27.45
Bihar	8.07	3.28	1.18
West Bengal	3.56	0.40	23.20
Odisha	8.73	2.35	0.87
Chattisgarh	2.71	1.10	1.49
Madhya Pradesh	2.70	5.04	4.19
Gujarat	53.14	53.53	65.20
Daman & Diu	-	-	1.25
Dadra Nagar Haveli	-	-	2.80
Maharashtra	1,341.54	996.66	583.00
Karnataka	139.61	69.09	47.03
Kerala	4.01	8.09	-
Tamil Nadu	122.40	100.27	41.25
Telangana	21.11	11.99	22.81
Andhra Pradesh	29.17	26.11	8.61
Ladakh	-	0.50	-
Singapore	2.25	3.60	0.33
Gift City	16.08	3.02	2.13
Total	1,991.56	1,480.56	1,002.90

 

The Objective of the Issue

The Net Proceeds from the Fresh Issue will be utilized towards the following objects:

1. Building Up Technology Infrastructure for the existing business.

2. Investment in Wholly owned subsidiary i.e. Beacon Investor Holdings Private Limited, to commence the services of Depository Participant and Registrar & Share Transfer Agent.

3. Purchase of New Office Premises.

4. General Corporate Purpose.

 

 

Peers of Beacon Trusteeship Limited IPO

According to the DRHP of Beacon Trusteeship Limited, there is no directly listed company involved in the same business as of the company.

 

Evaluation

The IPO is priced within the range of Rs.57 to Rs.60 per share.

Evaluation of P/E Ratio

• Considering the FY24 EPS of Rs 3.64 from the last year, the resulting P/E ratio is 16.48x.

• Taking into account the weighted EPS of Rs 3.18 for the last three years, the P/E ratio amounts to 18.86x.

Comparative Analysis with Listed Peers

There is no listed peers of the company.

 

IPO's Strengths 

• Legacy advantages and networking capabilities

• Technological proficiency

• Pan-India presence and global reach

• Credibility and trust

 

IPO's Weaknesses 

• The company is subject to regulations governed by SEBI and other government agencies. Changes in regulations could impact its business model and increase costs.

• The trustee industry in India is becoming increasingly competitive.

• The company's business is subject to extensive SEBI (Debenture Trustees) Regulations 1993, including periodic inspections by SEBI.

• The company relies heavily on debenture trustee fees for a substantial share of its revenue and profitability.

• The company may face litigation from debenture holders if it fails to adequately fulfill its obligations and duties.

 

IPO GMP Today

The Latest GMP of Beacon Trusteeship Limited is Rs.72.

 

Beacon Trusteeship Limited IPO timetable (Tentative)

Beacon Trusteeship Limited IPO is scheduled from May 28 to May 30, 2024, with allotment on May 31, refund initiation on June 3, and listing on June 4, 2024.

Events	Date
IPO Opening Date	May 28, 2024
IPO Closing Date	May 30, 2024
IPO Allotment Date	May 31, 2024
Refund initiation	June 3, 2024
IPO Listing Date	June 4, 2024

 

Beacon Trusteeship Limited IPO Details 

Beacon Trusteeship Limited IPO, with a face value of Rs.10 per share, opens on May 28 and closes on May 30, 2024, offering 5,420,000 shares at Rs.57 to Rs. 60 per share, with a lot size of 2000 shares, aiming to raise Rs.32.52 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	May 28, 2024 to May 30, 2024
Face Value	Rs.10 per share
Issue Price	Rs.57 to Rs. 60 per share
Lot Size	2000 Shares
Price of 1 lot	Rs. 120,000
Issue Size	5,420,000 shares (aggregating up to Rs.32.52 Cr)
Offer for sale	1,548,000 shares of Rs.10 (aggregating up to Rs.9.29 Cr)
Fresh issue	3,872,000 shares (aggregating up to Rs.23.23 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

Beacon Trusteeship Limited IPO Lot Details 

For Beacon Trusteeship Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (2000 shares) at Rs.120,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.240,000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Beacon Trusteeship Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Promoters and Management of Beacon Trusteeship Limited

• Prasana Analytics Private Limited 

• Mr. Pratapsingh Indrajitsingh Nathani

Pre-issue Promoter shareholding	67.88%
Post-issue Promoter shareholding	46.14%

 

Beacon Trusteeship Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd 

 

Dividend Policy

The Company has not paid / declared dividend in last three financial years.

 

Conclusion

The company specializes in debenture services and consistently demonstrates strong financial performance. It offers its services both within India and globally. Experienced investors may consider applying for the upcoming IPO for medium to long-term gains.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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