Esconet Technologies IPO Day 2: Issue subscribed 63 times so far; brokerage view, latest GMP & other details

The initial public offering (IPO) of Esconet Technologies Ltd has continued to receive strong demand from investors on the second day of bidding process. The SME (small and medium-sized enterprises) IPO began for subscription on February 16 and it would conclude on February 20. On Day 2, the initial share sale was subscribed 62.80 times at the time of writing this story. The issue saw 15,11,32,800 bids as against an issue size of 24,06,400.

The price band has been fixed at Rs 80-84 per share and the lot size will be 1,600 equity shares. The IPO comprised a fresh issue of 33,60,000 equity shares with a face value of Rs 10 through the book-building route.

As per Esconet's consolidated financial statements, revenue from operations stood at Rs 71.41 crore during the first half of the current fiscal year, which ended September 30, 2023 (H1 FY24), compared to an operating revenue of Rs 96.59 crore in the year-ago fiscal. During the mentioned period, it earned a profit after tax of Rs 3.05 crore as against Rs 3.18 crore in H1 FY23.

It also underscored that a significant portion of the company's revenue in the last three years was generated from government projects.

The company intends to raise around Rs 28.22 crore (at upper band) from the offering and aims to be listed with NSE Emerge.

Latest GMP

In the grey market, Esconet Tech shares were last seen trading at a premium of over 98 per cent against its issue price of Rs 84 (upper price band). The stock is likely to get listed on February 23, 2024.

Brokerage view

"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," said ProfitMart Securities.

Corporate Capital Ventures has been appointed as the book-running lead manager and Skyline Financial Services Pvt Ltd is the registrar to the issue.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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