E Factor Experiences IPO aims to raise ₹25.92 crore thorough a fresh issue of 34.56 lakh shares. The IPO price band is ₹71 to ₹75 per share. E Factor is an event management company engaged in providing event experiences, event services, technology-based permanent & semi-permanent multimedia light & sound installations and specialized turnkey event assignments, wedding management, private and social event solutions etc.
IPO opens
Sep 27, 2023
IPO Closes
Oct 03, 2023
IPO Size (Rs.)
₹25.92 Cr
IPO Size (shares)
3,456,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹71 to ₹75
Minimum Lot
1600 Shares
Listing At
NSE SME
Anchor quota
~ 28.5%
Market maker
5.05%
QIB
~ 19%
NII Quota
14.25%
Retail Quota
~33.2%
Lead Manager
Hem Securities Limited
Registrar
Maashitla Securities
Market maker
Hem Finlease
About E Factor Experiences Ltd
Incorporated in 2003, E Factor Experiences Ltd is an award-winning Indian event management company engaged in providing the consumers and community with event experiences, event services, technology based permanent & semi-permanent multimedia light & sound installations and specialized turnkey event assignments, wedding management, private and social event solutions.
Its portfolio of services includes turnkey assignments in the form of Government commissioned Tourism Events and Festivals, techno-cultural light & sound shows, Sporting Events & Contests, Conferences, Mega Ground Concerts, Televised Events, private and social events like wedding and anniversary celebrations etc.
Its manpower is a prudent mix of the experienced employees of 32 team members in total.
E Factor Experiences Ltd started from an office in New Delhi and presently have expanded its network to different parts of the country including offices at Delhi, Noida, Jaipur and Odisha.
Promoters: Samit Garg, Jai Thakore, Aruna Garg and Manika Garg
Financials: E Factor Experiences Ltd
Particulars/ Rs. Lacs
March 31, 2023
March 31, 2022
March 31, 2021
Total Net Revenue (Operations)
11,926.16
5,661.55
621.62
Profit Bef Tax
1,037.11
347.33
126.57
Profit After Tax
761.35
255.73
123.39
Paid up Share Capital
963.21
344
344
Net worth
1,101.67
351.85
96.96
Earnings Per Share – Diluted
7.82
2.65
1.28
NAV
11.44
3.65
1.01
Total Borrowings (As per Restated Balance Sheet)
912.74
590.95
683.23
Post issue Share Capital
1,309
FV
10.0
IPO price
75.0
EPS Fy23
5.8
PE Fy23
12.9
Market cap in Lacs
9,816.0
Market Cap/sales
0.8
Anchor: E Factor IPO
E Factor IPO: Salient Points
Promoter holding will come down from 100% to 73.6% after the IPO.
India’s Events and Experiential marketing Industry has observed an exponential growth in the past two decades .with more than 1000 entities operating in various levels and segments that are spread across 100+ Indian cities
E Factor Experiences Ltd has made an investment in E-Factor Adventure Tourism Private Limited, its subsidiary company which is engaged in the business of adventure tourism like operation and plying of Hot air balloons and Yachts.
and recently in year 2022 , it has acquired 48.31% stake of Untamed Leisure and Hospitality Private Limited in which we will be undertaking the business of leisure travel and hospitality. Its proposes to utilized approximately 200 lakhs towards investment in the Subsidiary company.
It has named its experiential tourism brand, “Sky Waltz” owned by the Subsidiary company namely E-Factor Adventure Tourism Private Limited. Skywaltz is engaged in the business of managing and operating hot air ballooning and yachting activities in multiple locations in India and is a government approved commercial hot air balloon operator for the last 12 years. As on date the subsidiary company has a fleet of 2 yachts and 11 hot air balloons.
Issue proceeds will be used for:
S. No
Particulars
Amt (₹ in Lakh)
1.
Investment in Subsidiary
200.00
2.
Funding working capital requirements
1,300.00
3.
Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company
350.00
4.
General Corporate Purpose
rest
Its business and revenues are substantially dependent on event/ projects awarded by government authorities or tourism department. Out of total revenue from operation 89.55%, 93.26% and 79.23% for the Fiscal 2023, 2022 and 2021 it generated from the government authoritie.
The share of revenue through different category of events are as under
Category
Fiscal 2023
Fiscal 2022
Fiscal 2021
Social Events
1,018.65
265.12
103.49
Tourism/ Sports/ Government Events
9,188.27
4,630.34
408.28
Multimedia Show
1,019.26
438.00
0.00
Corporate Events
172.92
101.18
3.55
Total
11,399.10
5,434.64
515.32
As evident the big push in revenues is coming from Govt. sponsored events in FY23.
Recently in Fiscal 2023, the company has diversified its services of social events in countries such as Barcelona, Spain and has earned ₹ 945.20 lakhs which contributed to 8.29% of revenue from operations.
Major events managed by our company in last 3 years
Sr. No.
Name
Year
1
Eco Retreat, Odisha
2021, 2022
2
DotFest, Bhubaneswar
2023
3
Rourkela City Festival
2023
4
Kashi Balloon & Boat Race
2023
5
Mandu Festival
2021, 2022, 2023
6
Commemorating 75 years of departure of British from–India – Multimedia Light & Sound Show at Gateway of India
2023
7
FIDE Chess Olympiad
2022
8
Laser Show & Fireworks at Deepotsav
2022
9
Barcelona Wedding
2022
10
Priti Goenka – 60th Birthday Celebrations – Dubai
2022
11
Baba Saheb – The Grand Musical show on life & teaching of Baba Saheb Ambedkar
E Factor IPO is coming at a PE ratio of 12.9x(fy23 earnings) .
I intend to apply in E Factor IPO subject to availability of funds.
GMP as reported on social media has been around Rs. 18.
Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Saakshi Medtech, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
There are reports that SEBI is of view that SME stocks prone to more market manipulation and SEBI may be looking to curb speculation in SME stocks.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in 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.
