Beacon Trusteeship IPO (SME) Overview

 Beacon Trusteeship Limited is a debenture trustee offering trustee services in areas such as Debenture Trustee Services, Security Trustee Services, Trustee to Alternate Investment Fund (AIF), Trustee to ESOP, Securitization Trustee, Bond Trusteeship Services, Escrow Services, Safekeeping services. Beacon Trusteeship IPO will be raising Rs 32.52 crores. The issue is a combination of fresh issue of 38.72 lakh shares aggregating to Rs 23.23 crores and offer for sale of 15.48 lakh shares aggregating to Rs 9.29 crores.

IPO opensMay 28, 2024
IPO ClosesMay 30, 2024
IPO Size (Rs.)₹32.52 Cr
IPO Size (shares)5,420,000 shares
BreakupFresh issue ₹₹23.23 Cr + OFS ₹9.29 Cr
Face Value:₹ 10
IPO Price in Rs :₹57 to ₹60 per share
Minimum Lot2000 Shares
Listing AtNSE SME
QIB~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerBeeline Capital 
Registrar Kfin Technologies
Market maker Spread X Securities.

About Beacon Trusteeship Limited:

  • .Company is a SEBI registered Debenture Trustee which provides wide range of trusteeship service across various sectors such as Debenture Trustee Services, Security Trustee Services, Trustee to Alternate Investment Fund (AIF), Trustee to ESOP, Securitization Trustee, Bond Trusteeship Services, Escrow Services, Safe keeping and other allied services.
  • Company is currently managed by group of professionals having extensive experience in the field of Investment Banking, Finance, Debt Syndication and financial services at large.
  • Company provides trusteeship services by acting as intermediary between the issuer company or entity and investors.
  • Company as a Debenture Trustee plays a pivotal role in their Scope of work under trusteeship services includes Due diligence, Custodial services, Monitoring compliance, Documentation, Disclosures, Record keeping etc.
  • As a trustee, company plays a crucial role in maintaining investor confidence by safeguarding their interests and promoting transparency and accountability.
  • Company with the help of a technology, a dedicated legal and compliance team for each of their products viz. Debenture Trusteeship, Security Trustee for Loans, Alternative Investment Funds, Securitization and Escrow, they are able to execute transactions as per clients’ needs.
  • Promoters of Company are Prasana Analytics Private Limited and Mr. Pratapsingh Indrajitsingh Nathani,

Financials: Beacon Trusteeship IPO

Particulars/  Rs. LacsMar 31, 2024Mar 31, 2023Mar 31, 2022
Revenue from operations1,991.561,480.561,002.90
Profit After Tax516.36384.64361.58
Share Capital1,419.29301.98301.98
Net worth1,916.291,399.531,016.53
Earnings Per Share3.642.712.74
NAV per Equity Shares13.59.867.71
Total BorrowingsNilNilNil
Post issue Share Capital1806  
IPO price60.0  
EPS Fy232.1  
PE Fy2328.2  
EPS Fy242.9  
PE Fy24 21.0  
Market cap in Lacs10,836  
Market cap / Sales7.63  

Anchors: Beacon Trusteeship IPO

Beacon Trusteeship IPO: Salient Points

  • The demand for trustee services is growing in India due to the increasing number of complex financial transactions. This presents an opportunity for SEBI registered trustee companies to grow their businesses.
  • From the net proceeds of IPO:
  Sr. No.  ParticularsAmount (in Lakhs)
1.Building Up Technology Infrastructure for our existing business.700.00
  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..  699.00
3.Purchase of New Office Premises.325.00
  • Key Performance Indicators
  ParticularsFor the Year ended on
Revenue from Operations (₹ in Lakhs)1,991.561,480.561,002.90
Growth in Revenue from Operations (%)34.51%47.63%
EBITDA (₹ in Lakhs)689.29499.86487.67
EBITDA Margin (%)34.61%33.76%48.63%
Profit After Tax (₹ in Lakhs)516.36384.64361.59
PAT Margin (%)25.93%25.98%36.05%
RoE (%)31.12%31.82%50.52%
Operating Cash Flows (₹ in Lakhs)503.99(67.20)66.25
  • Bifurcation of Revenues from various streams:
ParticularsFor the period/year ended
Alternate Investment Fund194.10167.9137.74
Bond Trustee19.0216.8814.45
Debenture Trustee917.24830.62601.65
Escrow Agent91.2146.5137.37
Other services14.4737.1710.00
Security Trustee501.42205.4791.21
  • They have a tech development team that develops BFSI related solutions viz. ERP, Compliance & Covenant Monitoring Platforms to ensure the highest level of regulatory compliance for clients. Their proprietary Tech platforms include:
    • PROSEC – Securitization Platform
    • BEACON 360 – An ERP Platform
    • Investment Manager Platform
    • Covenant Monitoring Platform
  • As shown above company has built its own client-facing ERP System, a dedicated platform for Securitization & a Covenant Monitoring Tech Platform, demonstrating adaption and flexibility to the new age business and ease of doing business for customers.
  • Peers: None
  • Company has locational presence in more than 15 cities in India including major cities such as Mumbai, Delhi, Chennai, Hyderabad, Jaipur, Bangalore, Chandigarh, Indore, Kolkata, Lucknow and Gandhinagar whether through regional offices or signatories.
  • They have recently expanded their locational presence by opening Business office at Gujarat International Finance Tec-City (GIFT) which is an International Financial Services Centre (IFSC) in order to increase their reach and to obtain various regulatory advantages.
  • Beacon has been able to rank amongst the Top 3 Trustees over the last couple of years as per PRIME Database.
  • They have acted as Debenture Trustee for Bond Issues launched by Power Finance Corporation Limited, IREDA, GAIL, BSNL, MTNL, NTPC, REC, NMDC Steel Limited. and many more companies.
  • Asset Light Business Model
  • Beacon Trusteeship IPO is coming at a PE ratio of 21x (fy24 earnings) .
  • I intend to apply in Beacon Trusteeship IPO subject to availability of funds. Company has reported steady performance and provides many security markets related services under one roof. The demand for trustee & allied services is growing in India.
  • GMP as reported on social media has been Rs. 95 (158%)
  • Beeline Capital Advisors Pvt Ltd is the Lead Manager to the issue. It has a fair to good record. Past issues handled by them include Rulka Electricals Limited, Piotex Industries, Winsol Engineers, Emmforce Autotech Limited, Greenhitech Ventures Limited, TAC Infosec Limited IPO, KP Green Engineering Limited, Pratham EPC Projects, V R Infraspace, Rudra Gas Enterprise Limited, Fonebox Retail Limited, Konstelec Engineers, Australian Premium Solar, Indifra Limited, Benchmark Computer Solutions, Sheetal Universal Limited, Rajgor Castor Derivatives, Arvind and Company Shipping Agencies, Karnika Industries Limited, Hi-Green Carbon Limited, Kody Technolab Limited, Chavda Infra Limited, Vinsys IT Services Limited,Ahasolar Technologies, Pentagon Rubber, Remus Pharmaceuticals, Sotac Pharmaceuticals, RBM Infracon Limited, Transvoy Logistics, Dev Labtech, Viviana Power Tech, Vital Chemtech, Aristo Bio-Tech and Lifescience, Viaz Tyres, Vertexplus Technologies etc.
  • SME IPO are much more risky and volatile than mainboard IPOs and may not be suitable at least for new retail investors.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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