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- Beacon Trusteeship Ltd
Beacon Trusteeship Ltd
The 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. The Company is currently managed by group of professionals expertise in the field of Investment Banking, Finance, Debt Syndication and financial services at large. It provides trusteeship services by acting as intermediary between the Issuer company or entity and investors.
The 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, it plays a crucial role in maintaining investor confidence by safeguarding their interests and promoting transparency and accountability.
The Company with the help of a technology, a dedicated legal and compliance team for each of its products like Debenture Trusteeship, Security Trustee for Loans, Alternative Investment Funds, Securitization and Escrow, are able to execute transactions as per clients' needs. The Company has built its own client-facing ERP System, a platform for Securitization & a Covenant Monitoring Tech Platform, demonstrating their adaption and flexibility to the new age business and ease of doing business for the customers.
The Company has recently expanded its 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 reach and obtain various regulatory advantages. As a Debenture Trustee, it enters into a formal agreement with the Issuer company to issue Debentures of any type including Non-Convertible Debentures. The terms & scope of work is generally governed by such formal agreements apart from the regulatory obligations applicable from SEBI, RBI or any other competent authority.
The Company as a trustee conducts Due-diligence and periodic monitoring, ensure compliance with SEBI (Debenture Trustee) Regulations, 1993, SEBI (Issue and Listing of Non-Convertible Securities) Regulations, SEBI LODR Regulations and relevant applicable circulars and guidelines. As a Trustee to Alternative Investment Fund (AIF), it enters into formal agreement with 'Settlor' who is desired to set up the Alternative Investment Fund and appoints the Company as trustee under the same agreement. As Securitization Trustee, it settles trust for the purpose of securitization.
The Company is proposing the Initial Public Offer aggregating 5500000 Equity Shares comprising 3900000 Fresh Issue and 1600000 Offer for Sale.
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Beacon Trusteeship Ltd IPO Timeline
Beacon Trusteeship Ltd IPO opens on 28-May-2024, and closes on 30-May-2024. The Beacon Trusteeship Ltd IPO bid date is from 28-May-2024 to 30-May-2024. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Beacon Trusteeship Ltd IPO Opening Date | 28-May-2024 |
| Beacon Trusteeship Ltd IPO Closing Date | 30-May-2024 |
| Basis of Allotment | 31-May-2024 |
| Initiation of Refunds | 03-Jun-2024 |
| Credit of Shares to Demat | 03-Jun-2024 |
| Beacon Trusteeship Ltd IPO Listing Date | 04-Jun-2024 |
Beacon Trusteeship Ltd IPO Lot Size
Beacon Trusteeship Ltd IPO lot size is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or 120000).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 2000 | ₹120000 |
| Maximum | 1 | 2000 | ₹120000 |
Beacon Trusteeship Ltd IPO Details
| Beacon Trusteeship Ltd IPO Date | 28-May-2024 to 30-May-2024 |
| Beacon Trusteeship Ltd IPO Face Value | Shares of ₹10 per share |
| Beacon Trusteeship Ltd IPO Price | ₹57 to ₹60 per share |
| Beacon Trusteeship Ltd IPO Lot Size | 2000 |
| Issue Size | Shares of ₹10 (aggregating up to ₹32.52 Cr) |
| Fresh Issue | Shares of ₹10 (aggregating up to ₹23.23 Cr) |
| Offer for Sale | Shares of ₹10 (aggregating up to ₹9.29 Cr) |
| Issue Type | Book Building - SME |
| Listing At | NSE - SME |
| QIB Shares Offered | - |
| Retail Shares Offered | - |
| NII (HNI) Shares Offered | - |
| Company Promoters | Prasana Analytics Pvt Ltd, Pratapsingh Indrajitsing Natha. |
Objects of the Issue
The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
- 1 Building up technology infrastructure for its existing business
- 2 Acquisition of Beacon RTA Services Pvt Ltd and making it wholly ownded subsidiary company theron to commerce the services of depository participant and register & share transfer agent
- 3 Purchase of New Office Premises
- 4 General Corporate Purposes
Company Financials
Beacon Trusteeship Ltd Financial Information (Restated)
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| 03-2023 | 22.49 | 15.72 | 4.02 |
| 03-2022 | 16.82 | 10.48 | 3.40 |
| 03-2021 | 8.68 | 5.60 | 1.11 |
| Amount in ₹ Crore | |||
- Legacy Advantages and Networking Capabilities.
- Technological Proficiency.
- Pan-India Presence and Global reach.
- Credibility and Trust.
- The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
- The company does not own its registered office.
- The Company is subject to SEBI governed regulatory body and other government agencies. Changes in regulations could impact the business model of the company and increase in costs.
- The trustee industry in India is becoming increasingly competitive. Trustee companies face competition from both established players and new entrants. Increased competition could put downward pressure on fees and margins.
- The Company as Trustee company plays a critical role in protecting the interests of debenture holders. If the company fails to adequately fulfill its obligations and duties, this could damage its reputation and make it more difficult to attract new clients in the future.
- Its business is subject to extensive SEBI (Debenture Trustees) Regulations 1993, including periodic inspections by SEBI, and its non- compliance with existing regulations or SEBI's observations or its failure or delay to obtain, maintain or renew regulatory approvals could expose it to penalties and restrictions.
- The company relies on a team of experienced professionals to provide debenture trustee services. The loss of any key personnel could have a negative impact on the company's business.
- The company is dependent on Debenture trustee fees for a substantial share of its revenue and profitability. Any reduction in the company Debenture trusteeship fees could have material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
- The Company is dependent on few numbers of customers for sales from top 10 customers. Loss of any of these large customers may affect its revenues and profitability.
- The Company will not receive any proceeds from the Offer for Sale portion, and the Promoter Selling Shareholder/ Selling Shareholder shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale.
- The regulatory environment in which the company operate is subject to change, and such changes may be unpredictable and may expose it to additional costs or materially adversely affect its business, growth results and financial condition.
- The company may faces litigation from debenture holders if its fail to adequately fulfill its obligations and duties. This could lead to significant legal costs and damages.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- Deployment of the Proceeds is not subject to any monitoring by any independent agency. The purposes for which the Proceeds of the Offer are to be utilized are based on management estimates and have not been appraised by any banks or financial institutions.
- The company sources a large part of its new orders from its relationships with corporates and other customers, both present and past. Any failure to maintain its long-standing relationships with its existing customers or forge similar relationships with new ones would have a material adverse effect on its business operations and profitability.
- A general economic downturn could lead to a decrease in the demand for debenture trustee services, as companies are less likely to issue debentures during difficult economic times and this could pose a risk to the profitability and viability of debenture trustee.
- In addition to normal remuneration, other benefits and reimbursement of expenses, some of its Directors (including its Promoters) are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
- There are certain discrepancies and non- compliances noticed in filling of various forms with Registrar of Companies.
- In case its services to the clients are not satisfactory it may cause damage to its professional reputation and legal liability.
- Financial services firms are subject to increased scrutiny concerning perceived conflicts of interest that increase the risk of financial liability and reputational harm resulting from adverse regulatory actions. A failure to identify and address conflicts of interest appropriately could adversely affect its business.
- Its ability to attract, train and retain executives and other qualified employees is critical to its business, results of operations and future growth.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- In addition to normal remuneration, other benefits and reimbursement of expenses to its Promoter, Directors, key Managerial Personnel and they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and our Group Companies/Entities. the Company in future may enter in related party transactions subject to necessary compliances.
- The company has experienced negative cash flows from operations in the recent past, and its may have negative cash flows in the future.
- The average cost of acquisition of Equity Shares by its Promoters could be lower than the offer price.
- If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
- Its Promoter and Promoter group will continue to retain significant control over the Company after the Public Issue.
- Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Offer Price.
- The Objects of the Issue for which funds are being raised are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titled "Objects of the Issue".
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Industry information included in this Draft Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
- Third party statistical and financial data in this Draft Red Herring Prospectus may be incomplete or unreliable.
- The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Offer".
- Its ability to pay dividends in the future will depends upon the company's future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
- Its inability to effectively implement the company's business and growth strategy may have an adverse effect on its operation and growth.
- The company is yet to place orders for Building Up Technology Infrastructure for its existing business, for which a significant portion of the Net Proceeds are proposed to be utilized.
- There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.
- With the object of Investment in Wholly owned subsidiary i.e. Beacon Investor Holdings Private Limited, to commence the services of Depository Participant and Registrar & Share Transfer Agent, Amendments in regulations / NSDL requirements w.r.t increase in costs could lead to fluctuation in deployment of Net Proceeds. There can be no assurance that the company shall be able to successfully deploy such portion of the Net Proceeds as per its estimates.
- Customer Focus.
- Service Excellence.
- Differentiation.
- Operational Efficiency.
- Employee Engagement.
- Market Expansion.
- Innovation and Adaptation.
- Financial Management.
- Reputation Management.
- Long-term Vision.
Beacon Trusteeship Ltd IPO Promoter Holding
| Pre Issue Share Holding | 67.87% |
| Post Issue Share Holding | 46.14% |
Beacon Trusteeship Ltd IPO Subscription Status (Bidding Detail)
The Beacon Trusteeship Ltd IPO is subscribed - times on May 30, 2024 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | QIB | NII | Retail | Employee | Total |
|---|---|---|---|---|---|
| Subscription (times) | - | - | - | - | - |
Beacon Trusteeship Ltd IPO Prospectus
Beacon Trusteeship Ltd IPO Listing Date
| Listing Date | 04 Jun 24 |
| BSE Script | 92830 |
| NSE Symbol | BEACON |
| Listing In | NSE - SME |
| ISIN | INE639X01027 |
| IPO Price | ₹60 |
| Face Value | ₹10 |
Beacon Trusteeship Ltd IPO Registrar
KFin Techologies Ltd
Phone: +91 40 6716 2222/18003094001
Email: btsl.ipo@kfintech.com
Website: www.kfintech.com
Beacon Trusteeship Ltd IPO Lead Manager(s)
- Beeline Capital Advisors Pvt Ltd
FAQs on Beacon Trusteeship Ltd IPO
Beacon Trusteeship Ltd IPO, which opens for subscription from 28-May-2024 to 30-May-2024 has an issue size of ₹32.52 crore. The issue type is book building issue.
In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Beacon Trusteeship Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.
Beacon Trusteeship Ltd IPO Opens for subscription from 28-May-2024 to 30-May-2024.
The lot size of Beacon Trusteeship Ltd is 2000 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹120000 and ₹120000 respectively.
Allotment date for Beacon Trusteeship Ltd is 31-May-2024 and refund of application amount (in case allotment is not received) will begin from 03-Jun-2024. If your allotment goes through, then shares will be credited in your Demat account by 03-Jun-2024.
The registrar for Beacon Trusteeship Ltd IPO is KFin Techologies Ltd . You can check your IPO allotment status on the registrar's website.
The shares of Beacon Trusteeship Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
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