The ongoing initial public offering (IPO) of Esconet Technologies Ltd has garnered remarkable interest from investors, with the subscription reaching an impressive 62.80 times on the second day of the bidding process. The SME IPO, which opened for subscription on February 16, is set to conclude on February 20.
As of the latest update, the IPO has received a total of 15,11,32,800 bids, surpassing the issue size of 24,06,400. The price band for the IPO has been fixed at Rs 80-84 per share, with a lot size of 1,600 equity shares. Esconet Technologies is offering a fresh issue of 33,60,000 equity shares with a face value of Rs 10 through the book-building route.
In its consolidated financial statements, Esconet reported revenue from operations at Rs 71.41 crore during the first half of the fiscal year ending September 30, 2023 (H1 FY24). This is compared to an operating revenue of Rs 96.59 crore in the corresponding period of the previous fiscal year. The company recorded a profit after tax of Rs 3.05 crore in H1 FY24, slightly lower than the Rs 3.18 crore in H1 FY23. Notably, a substantial portion of Esconet’s revenue in the last three years has originated from government projects.
The company aims to raise around Rs 28.22 crore (at the upper band) through the IPO and is seeking a listing on NSE Emerge.
Latest GMP (Grey Market Premium): In the grey market, Esconet Tech shares are currently trading at a premium of over 98%, surpassing its issue price of Rs 84 (upper price band). The stock is slated to be listed on February 23, 2024.
Brokerage View: ProfitMart Securities expressed confidence in Esconet Tech’s future, stating, “After the proposed IPO, the company’s net worth will total Rs 33.88 crore; post-IPO, the equity capital will stand at Rs 12.36 crore. We are confident that Esconet Tech will deliver consistent performance and provide an excellent investment opportunity for investors with a long-term horizon.”
Corporate Capital Ventures has been appointed as the book-running lead manager, and Skyline Financial Services Pvt Ltd is the registrar to the issue.
