Pune E-Stock Broking Ltd. IPO: Review, Valuation, Date & GMP

Pune E-Stock Broking Limited IPO  - Complete Overview

Established in 2007, Pune E-Stock Broking Limited (PESB) operates as a prominent corporate broking house, providing a comprehensive range of services to its clients. 

The company facilitates trading across various segments including Equity, Futures & Options, Currency, and Commodity through platforms such as CTCL Terminals, Web Interface, and Mobile Apps for both Android and iOS devices. 

 

Here's an overview of the company's major products and services:

1. Client Broking: PESB offers a user-friendly platform for clients to invest or trade in stocks, providing real-time quotes, seamless execution via mobile apps, websites, or phone calls, timely market updates, and dedicated customer support for an efficient trading experience.

2. Depository Participant: The company extends depository services to its Equity trading clients through CDSL, enhancing its integrated service offering. PESB serves a client base of 23,155 active customers in its Depository.

3. Mutual Funds Distribution: PESB is actively involved in the distribution of Mutual Funds, offering diverse investment options including equity, debt, and hybrid funds to cater to varied investor preferences.

4. Corporate Deposits: PESB provides Corporate Deposits as a specialized investment service, catering to investors seeking stable returns and reliable investment avenues.

5. Currency Trading: PESB's currency derivatives service enables forex trading through multiple channels, presenting unique investment opportunities and versatile options for hedging, speculation, and portfolio diversification.

The company's clientele comprises both Authorized Persons as well as direct clients, totaling 60,640 clients, spread across more than 10 cities, as of March 2023. 

Additionally, PESB operates branch offices in Ahemdabad and Delhi to serve its clients efficiently. As of September 30, 2023, the company reported a total revenue of 3,010.80 lacs.

Pune E-Stock Broking Limited IPO Overview

Pune E-Stock Broking Limited IPO date is slated to be open for subscription from March 7, 2024, to March 12, 2024. This BSE SME IPO follows a Book built Price Issue IPO.

Pune E-Stock Broking Limited IPO price is set in the range of Rs.78 to Rs.83 per share. 

The total issue size of this IPO amounts to Rs.38.23 Cr. The company has reserved 35% for retail investors, 50% for insitutional investors, and 15% for non-institutional investors. 

Company Financial

Compared to the previous fiscal year, Pune E-Stock Broking Limited has seen growth in total assets and net worth, while decrease in total revenue. The profit after tax has decreased, while total borrowings have slightly risen.

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	22,224.76	15,801.00	16,314.24
Total Revenue	3,010.80	4,103.10	4,665.70
PAT	610.67	964.52	1,012.03
Net worth	8,259.66	7,654.66	6,754.55
Reserve & Surplus	7,155.22	6,918.36	6,018.26
Total Borrowings	826.19	1,853.74	1,640.17

 

Income wise revenue breakup 

(Amount in lakhs)

Revenue Breakup	30 sep.2023	FY 23	FY 22
Brokerage Income	2239.03	2598.67	3333.26
Commission & Rental Income	16.51	25.23	5.84
Interest Income	530.78	825.29	718.12
Investment Income	132.92	1,44.73	186.89
Total Income	2919.24	3593.94	4244.13

 

The Objective of the Issue

The company intended to use net proceeds to fulfil certain objectives:

1.To meet working capital requirements.

2. General Corporate Purpose.

3. Public Issue Expenses

 

 

 

Peers of Pune E-Stock Broking Limited IPO

Name of the Company	Face Value (Rs.)	EPS (Rs.)	P/E Ratio
Pune E – Stock Broking Limited	10.00	3.31	-
Share India Securities Limited	10.00	71.12	18.34
ICICI Securities Limited	5.00	34.44	18.02
Angel One Limited	10.00	105.90	17.47

 

IPO's Strengths 

• Experience promoters and management team.

• Business portfolio characterized by diversification yet seamless integration.

• Establishment of enduring client relationships over the long term.

• Robust risk management framework in place to mitigate potential hazards.
  
  

IPO weaknesses 

• Litigation involving the Company, its Directors, Promoters, Subsidiaries, and Group Companies may occur.

• Negative cash flow was recorded by the Company during the fiscal year 2023.

• The Company has faced penal actions from Stock Exchanges and SEBI previously.

• SEBI suspended the certificate of registration of the Group Company, Pune E Commodities Broking Private Ltd.

• The application for surrendering membership as a Commodity broker of MCX by the Group Company, Pune E Commodities Broking Private Ltd, is currently on hold.

• Approval for the resignation and appointment of directors by the Group Company, Pune E Commodities Broking Private Ltd, was not obtained.

• The recently established step-down subsidiary of the Company has yet to commence business operations due to pending license receipt from IRDAI.

• Commencement of operations by the Company's subsidiary is contingent upon SEBI's approval for the allotment process.

• The Company must obtain specific approvals, licenses, and adhere to regulations in the normal course of business.

• Market downturns or disruptions may lead to decreased transaction volumes, potentially impacting the Company's business and profitability.
  
  

IPO GMP Today 

The Latest GMP of Pune E-Stock Broking Limited IPO is Rs.40.

 

Pune E-Stock Broking Limited IPO timetable (Tentative)

Pune E-Stock Broking Limited IPO is scheduled from March 7 to March 12, 2024, with allotment on March 13, refund initiation on March 14, and listing on March 15, 2024.

Events	Date
IPO Opening Date	March 7, 2024
IPO Closing Date	March 12, 2024
IPO Allotment Date	March 13, 2024
Refund initiation	March 14, 2024
IPO Listing Date	March 15, 2024

Pune E-Stock Broking Limited IPO Details 

Pune E-Stock Broking Limited IPO, with a face value of Rs.10 per share, opens on March 7 and closes on March 12, 2024, offering 4,606,400 shares at Rs.78 to Rs.83 per share, with a lot size of 1600 shares, aiming to raise Rs.38.23 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 7, 2024 to March 12, 2024
Face value	₹10 per share
Issue Price	₹78 to ₹83 per share
Lot Size	1600 Shares
Price of 1 lot	₹132,800
Issue Size	4,606,400 shares (aggregating up to ₹38.23 Cr)
Fresh issue	4,606,400 shares (aggregating up to ₹38.23 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

 

Pune E-Stock Broking Limited IPO Lot Details 

For Pune E-Stock Broking Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.132,800 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.265,600.

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

 

Pune E-Stock Broking Limited IPO Reservation

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

Promoters and Management of Pune E-Stock Broking Limited

• Mr. Devendra Ramchandra Ghodnadikar

• Mr. Vrajesh Krishnakumar Shah

• Mr. Vrajesh Mr. Navnitbhai Shah

• Mr. Sandip Sunderlal Shah 

• Mr. Paresh Sunderlal Shah

• Mr. Daidipya Ghodnadikar.

Pre-issue Promoter shareholding	72.75%
Post-issue Promoter shareholding	51.34%

 

Pune E-Stock Broking Limited IPO Lead Managers:

• Share India Capital Services Private Limited

Dividend Policy

For the past three financial years, the company has not issued any dividends on its Equity Shares. The possibility of future dividend payments hinges on the company's financial performance.

 

 

Conclusion

Pune E-Stock Broking Limited presents a compelling investment opportunity through its upcoming IPO. The company has demonstrated consistent improvement in its financial performance over time. Nevertheless, potential investors should exercise diligence in evaluating both the strengths and challenges associated with its group company before making any investment decisions.

 

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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