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Home >> Blog >> Esconet Technologies Ltd IPO - Review, Valuation, Date & GMP

Esconet Technologies Ltd IPO - Review, Valuation, Date & GMP

  


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.

 

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.

 



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.



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