Pune E-Stock IPO (BSE SME) Overview

Pune E-Stock Broking Ltd. is in the field of financial services. Pune E-Stock IPO aims to raise Rs 38.23 crores. The issue is entirely a fresh issue of 46.06 lakh shares.

IPO opensMar 07, 2024
IPO ClosesMar 12, 2024
IPO Size (Rs.)₹38.23 Cr
IPO Size (shares)
4,606,400 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹78 to ₹83 per share
Minimum Lot1600 Shares
Listing AtBSE SME
QIB ~50 % (less anchor)
NII Quota~15%
Retail Quota~35%
 Lead ManagerShare India Capital Services Private Limited 
RegistrarBigshare Services Pvt Ltd i
Market makerShare India Securities.
.

About Pune E-Stock Broking Limited:

  • Company primarily offers platform to its clients for execution of trades (Equity, Futures & Options, Currency, and Commodity) with the Stock Exchange (NSE, BSE, MCX) through CTCL (Computer to Computer Link) Terminals, Web Interface & Mobile App (Android & iOS).
  • Company’s client base includes Authorised Persons (spread across 10+ Cities) as well as Direct Clients. Total count of client was 60,640 as of March 2023. The company has 2 branch offices in Ahemdabad & Delhi.
  • Company’s business from Authorised Persons (AP) involves registration of the AP as per the requirements of SEBI & Stock
  • Exchanges. The AP brings clients by offering all the required services like account opening, KYC, trade execution, query resolution & client servicing at his own costs. AP decides the amount of brokerage to be charged for the clients during the account opening process & based on the defined slab rates, brokerage gets charged to client at every trade. PESB retains a fixed portion of that brokerage for offering the infrastructure & back-end support. Thus, collection of all the brokerage is done by PESB accounted as Revenue from operations & it disburses the sub-brokerage on a monthly basis to the APs accounted as Expenses.
  • Along with stock broking services, company also offers ancillary services like Margin Trading Facility, Depository Accounts, Fixed Deposit & Mutual Fund Distribution.
  • Company is also engaged in proprietary trading which is currently 0.1% of total turnover of the company & Algorithm based trading, whereby company needs to have margin from the exchanges in F&O segment which requires company to place its fund as collateral in the form of Fixed Deposits with the exchanges.
  • Mr. Vrajesh Krishnakumar Shah, Mr. Devendra Ramchandra Ghodnadikar, Mr. Vrajesh Navnitbhai Shah, Mr. Sandip Sunderlal Shah Mr. Paresh Sunderlal Shah and Daidipya Ghodnadikar are the Promoters of Company.

Financials: Pune E-Stock Broking Limited

Particulars (₹ in Lacs.)2023 (06)2023 (12)2022 (12)2021 (12)
Total Income2575.243168.663751.913150.62
Profit/loss after tax552.64633.74602.12550.87
Share Capital1104.45736.29736.29736.29
Net worth6949.516396.875763.125161
Basic/Diluted EPS55.745.454.99
Net asset value per Equity Share90.1886.8778.2770.09
Total Borrowings146.191077.742035.161195
Post issue Share Capital1565   
FV10.0   
IPO price83.0   
EPS Fy234.0   
PE Fy2320.5   
EPS Fy24 (annualized)7.1   
PE Fy24  (annualized)11.8   
Market cap in Lacs12,989.5   
Market cap / Sales4.10   

Anchors: Pune E-Stock IPO

Pune E-Stock IPO: Salient Points

  • Share of mutual funds and equity in households’ financial savings has been seeing an uptrend.
  • The company is engaged in the business of Broking services in Equity, Currency Derivatives segments with BSE and NSE. With wide range of services, company is able to cater to the demands of all customers for comprehensive financial services..
  • The Net Proceeds are proposed to be utilized for:
ParticularsAmount (₹ in lakhs)*
To meet the working capital requirements3500.00
General Corporate Expenses*20.00
Public Issue Expenses[●]
  • Revenue Breakup
ParticularsFor the quarter ended 30 June, 2023% BreakupFor the year ended 31 March, 2023% Breakup
Brokerage823.2371.01%2604.6863.48%
Commission6.200.53%19.240.47%
Interest280.1224.16%1140.7927.80%
Investment49.734.29%338.408.25%
Total Income1159.29100.00%4103.10100.00%
  • The details of software used by them are mentioned below:
Software nameSupplier CompanyUsage
ODIN, ODIN Diet, AERO, Mobile Wave63 moons Technologies LimitedTrading Software
TechExcelTechexcel Software Solutions Pvt. Ltd.Back office Software
Sandesh (SMS Solution)XtremSoft Technologies Pvt LtdSMS send to clients
TrackwizzTSS Consultancy Pvt. Ltd.PMLA Alerts
RupeeSeedINNODIGITALOnline Account Opening
XTSSymphony Fintech Solutions Private LimitedAlgo Trading Software
Investwell MINT softwareExcel Net Solutions Private LimitedFor Mutual Fund
  • Peers:
CompanyCMP (₹)Revenue(₹cr)Net Profit(₹ cr)NPM %PEMacp/sales
Pune E – Stock Broking8331.77.423.2%20(12)4.1
Share India Securities1,7491,08833130.4%154.6
ICICI Securities7923,422111832.7%185.83
Angel One27363,00289029.6%21.86.2
  • From FY21 to FY23:
    • Revenue Rs.32 Crore to Rs.35 Crore
    • EBITDA 11 Crore to 15 Crore
    • PAT 6 Crore to 9 Crore
  • Pune E-Stock IPO is coming at a PE ratio of 20x (fy23 earnings) and 12x (Fy24 annualized earning)
  • I intend to apply in Pune E-Stock IPO subject to availability of funds. This is purely based on my expectation of possible good listing gain if allotted.
  • It may be noted that many times my expectations have proved to be wrong & I have been forced to sell or hold the stock in loss.
  • Share India Capital Services Private Limited has a good record as a Lead Manager. They have handled IPOs of Wise Travel India Limited, New Swan Multitech Limited, Krishca Strapping Solutions Limited, De Neers Tools Limited, Quicktouch Technologies, A G Universal Limited, Exhicon Events Media Solutions Limited, Maiden Forgings Limited, Humming Bird Education Limited, Anmol India Limited.
  • GMP as per Social media is around Rs. 100. It may be noted that such rates are perhaps in thin deals and may not be even indicative. I steer clear of any deals in GMP however lucrative they may appear.
  • SME IPO are much more risky and volatile than mainboard IPOs.
  • 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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