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Esconet Technologies Ltd IPO - Review, Valuation, Date & GMP
Table of Contents
- Esconet Technologies IPO - Complete Overview
- Esconet Technologies IPO Overview
- Company Financial
- The Objective of the Issue
- Promoters and Management of Esconet Technologies IPO
- Esconet Technologies IPO Lead Managers
- Peers of Esconet Technologies IPO
- Evaluation
- Dividend Policy
- IPO's Strengths
- IPO's Weaknesses
- IPO GMP Today
- Conclusion
Esconet Technologies IPO - Complete Overview
Esconet Technologies Limited, founded in 2012, specialises in high-end computing solutions, data center facilities, and cloud services. They offer a wide range of products and services tailored to client needs, including servers, workstations, storage solutions, virtualization software, and network security tools.
Their subsidiary, ZeaCloud Services, provides cloud-based solutions such as disaster recovery, managed cloud services, and DaaS. With a prestigious clientele including the Ministry of Defence National Informatics Centre, Indian Institute of Technology, Bharat Electronics Limited, and many more.
Esconet demonstrates a commitment to excellence and innovation. Their introduction of Hexa-Data, focusing on advanced computing technologies like AI and ML, further solidifies their position in the industry. Leveraging AI and ML across various sectors, Esconet delivers scalable solutions and innovative data management techniques, ensuring their clients have access to cutting-edge technology and seamless IT infrastructure.
Some of their main products are:
(a) Supercomputers |
(B) Servers |
Esconet Technologies IPO Overview
Esconet Technologies IPO date is slated to be open for subscription from February 16, 2024, to February 20, 2024. This NSE SME IPO follows a Book Built Issue IPO.
Esconet Technologies IPO price is fixed at Rs. 80- Rs.84 per share.
The total issue size of this IPO amounts to Rs.28.22 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors.
Esconet Technologies IPO timetable (Tentative)
Events |
Date |
IPO Opening Date |
16 February 2024 |
IPO Closing Date |
20 February 2024 |
IPO Allotment Date |
21 February 2024 |
Refund initiation |
22 February 2024 |
IPO Listing Date |
23 February 2024 |
Esconet Technologies IPO Details
IPO Opening & Closing Date |
16 February to 20 February 2024 |
Face value |
Rs.10 per share |
Issue Price |
Rs.80- Rs.84 per share |
Lot Size |
1600 Shares |
Price of 1 lot |
Rs.1,34,400 |
Total Issue Size |
3,360,000 shares (aggregating up to Rs.28.22 Cr) |
Fresh issue |
3,360,000 shares (aggregating up to Rs.28.22 Cr) |
Listing at |
NSE SME |
Issue Type |
Book Built Issue IPO |
Registrar |
Skyline Financial Services Private Ltd |
Esconet Technologies IPO Lot Details
Application |
Lot |
Shares |
Amount |
Minimum Lot Investment (Retail) |
1 lot |
1,600 |
Rs.1,34,400 |
Maximum Lot Investment (Retail) |
1 lot |
1,600 |
Rs.1,34,400 |
Minimum Lot Investment (HNI) |
1 lot |
3,200 |
Rs.2,68,800 |
Esconet Technologies IPO Reservation:
QIB Shares Offered |
Maximum 50% |
Retail Shares Offered |
Minimum 35% |
Other Shares Offered |
Minimum 15% |
Company Financial
Esconet Technologies saw significant increases in its financials from Sep 30 FY23 to Mar 31 FY23.
(Amount in Lakhs)
Period |
Sep 30, FY 23 |
Mar 31, FY 23 |
Total Assets |
4,260.46 |
2,798.37 |
Total Revenue |
7,146.71 |
9,690.84 |
PAT |
305.47 |
304.00 |
Net worth |
902.97 |
554.47 |
Reserve & Surplus |
825.19 |
477.48 |
Total Borrowings |
1,008.95 |
1,103.89 |
Import Bifurcation Geographical-Wise
Esconet Technologies' import purchases as a percentage of total purchases decreased significantly from the previous fiscal year, while domestic purchases showed an increase.
(in % age)
Particulars |
Mar 31, FY 23 |
Mar 31, FY 22 |
Mar 31, FY 21 |
Purchase Import |
9.13% |
14.67% |
5.98% |
Purchase Domestic |
90.87% |
85.33% |
94.02% |
Total |
100.00% |
100.00% |
100.00% |
Revenue Distribution Segment-Wise
Esconet Technologies' revenue from the government sector increased significantly in FY23 compared to FY22 and FY21.
(in % age)
Organisation |
Mar 31, FY 23 |
Mar 31, FY 22 |
Mar 31, FY 21 |
Government |
35.75% |
20.58% |
26.49% |
Other than Government |
64.25% |
79.42% |
73.51% |
Total |
100.00% |
100.00% |
100.00% |
Revenue by Operations
Esconet Technologies' revenue from operations saw a significant increase from Sep 30, FY23 to Mar 31, FY23.
(Amount in Lakhs)
Particulars |
Sep 30, FY 23 |
Mar 31, FY 23 |
Mar 31, FY 22 |
Revenue from operations |
7,127.78 |
9,465.96 |
6,856.29 |
Other Income |
5.12 |
31.58 |
3.08 |
Total Revenue |
7,132.90 |
9,497.54 |
6,859.37 |
The Objective of the Issue
The company intends to use the net proceeds for the following objectives.
-
The working capital requirement of the company,
-
Investment in Wholly Owned Subsidiary, viz. Zea Cloud Services Private Limited, to fund its capital expenditure expenses, and
-
General Corporate Expenses.
Promoters and Management of Esconet Technologies IPO
1. Mr. Santosh Kumar Agrawal.
2. Mr. Sunil Kumar Agrawal
Pre-issue Promoter Shareholding |
89.18% |
Post-issue Promoter Shareholding |
64.94% |
Esconet Technologies IPO Lead Managers
-
Corporate Capital Ventures Pvt Ltd
Peers of Esconet Technologies IPO
Esconet Technologies IPO boasts strong fundamentals compared to its peers E2e Networks Limited and Netweb Technologies India Limited.
Name of the Company |
Face Value (Rs. per share) |
P/ E |
EPS (Basic) (Rs.) |
Esconet Technologies Limited |
10.00 |
2.12 |
39.63 |
E2e Networks Limited |
10.00 |
26.11 |
6.85 |
Netweb Technologies India Limited |
2.00 |
9.22 |
Evaluation
The IPO is priced within the range of Rs. 80- Rs.84 per share.
Evaluation of P/E Ratio:
- Considering the FY23 EPS of Rs 39.63 from the last year, the resulting P/E ratio is 2.12x.
- Taking into account the weighted EPS of Rs 20.77 for the last three years, the P/E ratio amounts to 4.05x.
Comparative Analysis with Industry Average:
- The industry's average P/E is 36.9x.
As a result, the IPO price range, with a P/E ratio ranging from 2.12x to 4.05x, seems undervalued in comparison to the industry average of 36.9x.
.
Dividend Policy
The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.
IPO's Strengths
- High-end clientele
- Experienced promoter and management team with a successful track record
- Long-term client relationships and diversified business
- Versatile, technically sound, and young operations team
- Well-versed and equipped with advanced technology
- Track record of growth and profitability
IPO's Weaknesses
- Their business heavily depends on technology; any system disruption could impact operations.
- Regulatory changes may affect national and international finance, impacting their business.
- Ensuring the retention of skilled personnel is crucial for them.
- Competitors' performance poses a risk to their market position.
- Economic policy changes in India could directly affect their operations.
- Volatility in capital markets presents risks to their financial stability.
IPO GMP Today
The Latest GMP of Esconet Technologies IPO is Rs.100.
Conclusion
Esconet Technologies Limited, a company specialising in high-end computing solutions and cloud services, is poised to enter the market with its IPO. With a strong foundation built on innovation, a prestigious clientele, and a commitment to excellence, Esconet presents an attractive opportunity for investors.
The IPO, priced within the range of Rs. 80- Rs.84 per share, appears undervalued compared to industry averages, offering potential for growth. However, investors should carefully consider the risks associated with the company's heavy reliance on technology and market volatility. Overall, Esconet Technologies IPO presents an opportunity for investors seeking exposure to the burgeoning tech sector.
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.
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Frequently Asked Questions
Esconet Technologies IPO is open for subscription from February 16, 2024, to February 20, 2024.
The price range for Esconet Technologies IPO is fixed at Rs. 80- Rs.84 per share.
The total issue size of Esconet Technologies IPO amounts to Rs. 28.22 crore
Esconet Technologies IPO reserves 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors.