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 opens	May 28, 2024
IPO Closes	May 30, 2024
IPO Size (Rs.)	₹32.52 Cr
IPO Size (shares)	5,420,000 shares
Breakup	Fresh issue ₹₹23.23 Cr + OFS ₹9.29 Cr
Face Value:	₹ 10
IPO Price in Rs :	₹57 to ₹60 per share
Minimum Lot	2000 Shares
Listing At	NSE SME
QIB	~50 %
NII Quota	~15%
Retail Quota	~35%
Lead Manager	Beeline 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. Lacs	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Revenue from operations	1,991.56	1,480.56	1,002.90
Profit After Tax	516.36	384.64	361.58
Share Capital	1,419.29	301.98	301.98
Net worth	1,916.29	1,399.53	1,016.53
Earnings Per Share	3.64	2.71	2.74
NAV per Equity Shares	13.5	9.86	7.71
Total Borrowings	Nil	Nil	Nil
Post issue Share Capital	1806
FV	10.0
IPO price	60.0
EPS Fy23	2.1
PE Fy23	28.2
EPS Fy24	2.9
PE Fy24	21.0
Market cap in Lacs	10,836
Market cap / Sales	7.63

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.	Particulars	Amount (₹ 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

Particulars	For the Year ended on
	31-Mar-24	31-Mar-23	31-Mar-22
Revenue from Operations (₹ in Lakhs)	1,991.56	1,480.56	1,002.90
Growth in Revenue from Operations (%)	34.51%	47.63%	–
EBITDA (₹ in Lakhs)	689.29	499.86	487.67
EBITDA Margin (%)	34.61%	33.76%	48.63%
Profit After Tax (₹ in Lakhs)	516.36	384.64	361.59
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:

Particulars	For the period/year ended
	30-Mar-24	31-Mar-23	31-Mar-22
Alternate Investment Fund	194.10	167.9	137.74
Bond Trustee	19.02	16.88	14.45
Debenture Trustee	917.24	830.62	601.65
Escrow Agent	91.21	46.51	37.37
Other services	14.47	37.17	10.00
Security Trustee	501.42	205.47	91.21
Securitization	254.11	176.01	110.48
Total	1,991.56	1,480.56	1,002.90

• 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.