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- Esconet Technologies Ltd
Esconet Technologies Ltd IPO
The company is engaged in the business of meeting a wide range of IT requirements such as high-end supercomputing solutions, data centre facilities, encompassing storage servers, network security, virtualization, and data protection. The comprehensive solutions cater to the needs of SMEs, large enterprises, and public sector clients. Furthermore, Esconet extends its capabilities into the cloud services domain through its wholly owned subsidiary, ZeaCloud Services, ensuring that the companies clients have access to cutting-edge technology and a seamless IT infrastructure experience.
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Esconet Technologies Ltd IPO Timeline
Esconet Technologies Ltd IPO opens on 16-Feb-2024, and closes on 20-Feb-2024. The Esconet Technologies Ltd IPO bid date is from 16-Feb-2024 to 20-Feb-2024. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Esconet Technologies Ltd IPO Opening Date | 16-Feb-2024 |
| Esconet Technologies Ltd IPO Closing Date | 20-Feb-2024 |
| Basis of Allotment | 21-Feb-2024 |
| Initiation of Refunds | 22-Feb-2024 |
| Credit of Shares to Demat | 22-Feb-2024 |
| Esconet Technologies Ltd IPO Listing Date | 23-Feb-2024 |
Esconet Technologies Ltd IPO Lot Size
Esconet Technologies Ltd IPO lot size is 1600 shares. A retail-individual investor can apply for up to 1 lots (1600 shares or 134400).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 1600 | ₹134400 |
| Maximum | 1 | 1600 | ₹134400 |
Esconet Technologies Ltd IPO Details
| Esconet Technologies Ltd IPO Date | 16-Feb-2024 to 20-Feb-2024 |
| Esconet Technologies Ltd IPO Face Value | Shares of ₹10 per share |
| Esconet Technologies Ltd IPO Price | ₹80 to ₹84 per share |
| Esconet Technologies Ltd IPO Lot Size | 1600 |
| Issue Size | Shares of ₹10 (aggregating up to ₹28.22 Cr) |
| Fresh Issue | Shares of ₹10 (aggregating up to ₹28.22 Cr) |
| Offer for Sale | - |
| Issue Type | Book Building - SME |
| Listing At | NSE - SME |
| QIB Shares Offered | - |
| Retail Shares Offered | - |
| NII (HNI) Shares Offered | - |
| Company Promoters | Santosh Kumar Agrawal, Sunil Kumar Agrawal, Vineet Agrawal. |
Objects of the Issue
The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
- 1 Working capital requirement of the company Esconet Technologies Ltd
- 2 Investment in wholly owned subsidiary viz "Zeacloud Services Pvt Ltd" to fund its capital expenditure expenses
- 3 General corporate expenses
Company Financials
Esconet Technologies Ltd Financial Information (Restated)
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| 03-2024 | 72.01 | 137.72 | 5.30 |
| 03-2023 | 28.91 | 94.98 | 3.03 |
| 03-2022 | 25.88 | 68.59 | 0.72 |
| Amount in ₹ Crore | |||
- High-end clients.
- Experienced Promoter and management team with strong industry expertise and successful track record.
- Experienced Promoters (experience of over 20 years) .
- Long term relationship with clients and repeat & diversified business.
- Versatile, Technically Sound and young operation Team, which understands creativity at its excellence.
- Well versed and equipped with advance technology.
- Track record of growth and profitability.
- The Company has given commitments of Rs. 260.53 Lakhs on September 30, 2023 in respect to the assignments undertaken from the clients. The company cannot assure that there will be no default on its part in the future.
- Its lenders have charged over the company movable properties and book debts in respect of finance availed by it.
- Its top five clients contribute approximately 41.35 %, 37.93% and 32.91% of its revenues from operations for the year ended March 31, 2023, March 31, 2022 and March 31, 2021 respectively. Any loss of business from one or more of them may adversely affect its revenues and profitability.
- A significant portion of its revenues from operations for the last 3 years is generated from Government Projects. Any loss of business from may adversely affect its revenues and profitability.
- The company has experienced negative cash flows and any negative cash flows in the future could adversely affect its financial conditions and results of operations.
- The Company has availed Rs. 671.62 Lakh as unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect its financial condition.
- If the company is unable to attract new clients or its existing clients does not renew their contract, the growth of its business and cash flows will be adversely affected.
- If the company is unable to successfully protect its computer systems from security risks, its business could suffer.
- The company is engaged in industry of Information Technology which is the fastest evolving industry in the world, (risk of obsolescence in current technology).
- The property used by the Company for the purpose of its operations is owned by its Promoter. Any termination of the relevant rent agreement in connection with such property or its failure to renew the same could adversely affect the company's operations.
- The Company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- Failure to effectively safeguard itd computer systems against security risks could have detrimental consequences for its business.
- If the company unable to attract and retain highly skilled IT professionals, its may not have the necessary resources to properly staff projects, and failure to successfully compete for such IT professionals could materially adversely affect its business, financial condition and results of operations.
- The company requires certain registrations and permits to operates the company's business, and failure to obtain them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect its operations and financial conditions.
- The company might be required to use open-source software in providing services to its clients. There are risks associated with the use of open-source software and may have an adverse effect on its results of operations and financial condition.
- Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
- There are certain discrepancies and non- compliances noticed in some of its corporate records relating to forms filed with the Registrar of Companies, taxation authorities and other public authorities.
- Its success depends largely upon the services of the company's Promoter and other Key Managerial Personnel and its ability to retain them. Its inability to attract and retain key managerial personnel may adversely affect the operations of the Company.
- Its revenues and expenses are difficult to predict and can vary significantly from period to period, which could cause its share price to decline.
- Its business is subject to evolving laws regarding privacy, data protection, and other related matters. Many of these laws are subject to change and could result in claims, changes to its business practices, monetary penalties, increased cost of operations, or declines in user growth or engagement, or otherwise which may harm its business.
- Incorrect or improper implementation or use of its software or inability of its platform to integrate with third-party software or hardware could result in customer dissatisfaction and negatively affect its business, operations, financial results and growth prospects.
- Disruption of operations at its software development facilities may adversely affect its business, financial condition and results of operations.
- Changes in technology may render its current technologies obsolete or requires the company to make substantial capital investments.
- Significant disruptions in its information technology systems or breaches of data security could adversely affect its business and reputation.
- The company face strong competition from onshore and offshore IT services companies, and increased competition, its inability to compete successfully against competitors, pricing pressures or loss of market share could materially adversely affect its business, financial condition and results of operations.
- Its business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.
- Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company even after the Issue which will allow them to determine the outcome of matters submitted to shareholders for approval.
- The average cost of acquisition of Equity Shares by its Promoters could be lower than the issue price.
- The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.
- The Company is involved in certain legal proceeding(s) potential litigations. Any adverse decision in such proceeding(s) may render it/them liable to liabilities/penalties and may adversely affect its business and results of operations.
- Any customer dispute regarding its performance or workmanship may amount in delay or withholding of payment to it.
- Its Promoters have interest in the Company, other than reimbursement of expenses incurred or remuneration.
- There may be potential conflicts of interest if its Promoters or Directors get involved in any business activities that compete with or are in the same line of activity as its business operations.
- The company has not made any dividend payments in the past and its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- The Price of its Equity Shares may be volatile, or an active trading market may not develop.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- The company cannot assure you that its equity shares will be listed on the SME platform of NSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.
- Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
- 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 Issue Price.
- Continued focus on post sales services.
- Provide tailor-based services as customer desires.
Esconet Technologies Ltd IPO Promoter Holding
| Pre Issue Share Holding | 82.50% |
| Post Issue Share Holding | 60.08% |
Esconet Technologies Ltd IPO Subscription Status (Bidding Detail)
The Esconet Technologies Ltd IPO is subscribed 337.4514 times on Feb 20, 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) | - | - | - | - | 337.4514 |
Esconet Technologies Ltd IPO Prospectus
Esconet Technologies Ltd IPO Listing Date
| Listing Date | 23 Feb 24 |
| BSE Script | 92683 |
| NSE Symbol | ESCONET |
| Listing In | NSE - SME |
| ISIN | INE0RQZ01017 |
| IPO Price | ₹84 |
| Face Value | ₹10 |
Esconet Technologies Ltd IPO Registrar
Skyline Financial Services Pvt
Phone: +91- 11-40450193-97;
Email: ipo@skylinerta.com
Website: www.skylinerta.com
Esconet Technologies Ltd IPO Lead Manager(s)
- Corporate Capital Ventures Pvt Ltd
FAQs on Esconet Technologies Ltd IPO
Esconet Technologies Ltd IPO, which opens for subscription from 16-Feb-2024 to 20-Feb-2024 has an issue size of ₹28.22 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 Esconet Technologies Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.
Esconet Technologies Ltd IPO Opens for subscription from 16-Feb-2024 to 20-Feb-2024.
The lot size of Esconet Technologies Ltd is 1600 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹134400 and ₹134400 respectively.
Allotment date for Esconet Technologies Ltd is 21-Feb-2024 and refund of application amount (in case allotment is not received) will begin from 22-Feb-2024. If your allotment goes through, then shares will be credited in your Demat account by 22-Feb-2024.
The registrar for Esconet Technologies Ltd IPO is Skyline Financial Services Pvt. You can check your IPO allotment status on the registrar's website.
The shares of Esconet Technologies Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
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