Esconet Technologies IPO consists of a fresh issue of shares worth INR 28.22 crores. The company seeks funds to meet working capital requirements, invest in its subsidiary- Zeacloud Services Private Limited, and for general corporate purposes.
Esconet Technologies Limited IPO – Important Details
| Esconet Technologies Limited IPO Date | February 16, 2024 to February 20, 2024 |
| Esconet Technologies Limited IPO Listing Date | February 23, 2024 |
| Esconet Technologies Limited IPO Price | INR 80-84 per share |
| Esconet Technologies Limited IPO Lot Size | 1600 Shares |
| Esconet Technologies Limited IPO Total Issue Size | INR 28.22 crores |
| Esconet Technologies Limited IPO Basis of Allotment | February 21, 2024 |
| Esconet Technologies Limited IPO Initiation of Refunds | February 22, 2024 |
| Esconet Technologies Limited IPO Credit of Shares to Demat | February 22, 2024 |
| Esconet Technologies Limited IPO Issue Type | Book Built Issue IPO |
| Esconet Technologies Limited IPO Listing At | NSE SME |
Esconet Technologies Limited IPO- Company Profile
Esconet Technologies Private Limited, founded in 2012, meets many IT requirements, such as high-performance supercomputing solutions, data center facilities, 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 clients have access to cutting-edge technology and a seamless IT infrastructure experience.
Recognizing the demand in the Indian market, Esconet introduced its brand, HexaData, specializing in high-performance Servers, Workstations, and storage systems. Additionally, Esconet’s strategic collaboration with NVIDIA has resulted in growth in the artificial intelligence (AI) and machine learning (ML) domains, enhancing servers and workstations.
Esconet Technologies Limited IPO – Fundamental Analysis
Esconet Technologies Limited’s pre-IPO financials indicate strong revenue growth, consistent profitability, and significant asset expansion. Despite a decrease in RoNW, the stable EPS and NAV suggest a solid investment opportunity within a rapidly expanding tech sector.
Revenue Growth:
The company’s revenue increased significantly from ₹9,659.26 lakhs at the end of March 2023 to ₹7,141.59 lakhs by September 2023, demonstrating strong business performance within six months.
Equity Expansion:
Equity saw a substantial rise from ₹588.61 lakhs to ₹902.97 lakhs in the same period, indicating investor confidence and possibly successful capital infusion efforts to support further growth.
Profitability:
Profit after tax remained relatively stable, with a slight decrease from ₹318.42 lakhs to ₹305.47 lakhs, suggesting consistent profitability despite rapid expansion and potential investment in growth opportunities.
Return on Net Worth (RoNW):
There was a decrease in RoNW from 54.83% to 33.83%, which could reflect the increased equity base and investments made for future growth, impacting short-term returns but potentially benefiting long-term value creation.
Diluted EPS:
The Diluted EPS shows a minor increase, indicating steady earnings power per share amidst the company’s expansion, from ₹39.63 to ₹39.73.
Asset and Liability Management:
Total assets and liabilities both saw significant increases, reflecting the company’s investment in expansion. The growth in liabilities suggests leveraging to fuel growth, which is typical for rapidly expanding companies.
NAV per Equity Share:
The slight decrease in NAV per equity share from ₹28.68 to ₹28.59 might reflect the dilution effect of equity expansion, but it remains relatively stable, indicating maintained intrinsic value per share.
Esconet Technologies Limited IPO Financial Information
| Particular | As of 31 March 2023 | As of 30 September 2023 |
| Revenue (₹ in lakhs) | 9,65926 | 7,141.59 |
| Equity (₹ in lakhs) | 588.61 | 902.97 |
| Expenses (₹ in lakhs) | 9,225.78 | 6,735.83 |
| Profit and Loss After Tax (₹ in lakhs) | 318.42 | 305.47 |
| RoNW (%) | 54.83% | 33.83% |
| NAV per Equity Share (₹) | 28.68 | 28.59 |
| Diluted EPS only (₹) | 39.63 | 39.73 |
| Total Assets (in lakhs) | 2,798.37 | 4,260.46 |
| Total Liabilities (in lakhs) | 2,209.76 | 3,357.49 |
Esconet Technologies IPO Peer Comparison
Esconet Technologies Limited boasts a high RoNW of 55% and an impressive EPS of ₹39.63, outshining E2E Networks Limited in profitability and operational efficiency. Compared to Netweb Technologies, Esconet demonstrates superior earnings power, albeit with a lower total income.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS Basic (₹) | EPS Diluted(₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Esconet Technologies Limited | 9,690.84 | 10 | NA | 39.63 | 39.63 | 55% | 72.24 |
| E2E Networks Limited | 6,696.19 | 10 | 26.107 | 6.85 | 6.77 | 20.06% | 34.13 |
| Netweb Technologies India Limited | 44,565.00 | 2 | NA | 9.22 | 9.07 | 68.01% | 18.39 |
Esconet Technologies Ltd IPO Objective
The main objective of Esconet Technologies’s IPO is to meet working capital needs, invest in its wholly-owned subsidiary, and to meet the general corporate purpose.
- Funding incremental working capital requirements: The company requires additional working capital to fund future growth requirements. The company plans to utilize INR 16 crores from the funds raised to meet the objective.
- Investing in Zeacloud Services Private Limited: The company proposes to allocate ₹2.5 crores towards funding the capital expenditure of the wholly-owned subsidiary, Zeacloud Services Private Limited. The objective is to fortify the subsidiary’s infrastructure by acquiring additional hardware and software to bolster its capacity, elevate security measures, and enhance overall monitoring capabilities.
- General Corporate Purposes: The Company aims to deploy the balance funds towards the general corporate goal, including funding growth, marketing, contingencies, ordinary business needs, and meeting expenses.
Esconet Technologies Limited IPO Risks And Challenges
Esconet Technologies IPO’s risks include heavy dependence on top five customers for 41% of revenue, vulnerability to loss of government project contracts, exposure to rapid technological obsolescence in the IT industry, and reliance on third-party suppliers for raw materials, risking operational disruptions.
- The top five customers contribute almost 41% of the revenue from operations. Any loss of business from such customers may adversely affect revenue and profitability. A significant portion of the revenues from operations for the last three years is generated from Government Projects. Any loss of business may adversely affect revenues and profitability.
- The company is engaged in Information Technology, the fastest-evolving industry in the world. Despite the evolution, the risk of obsolescence of current technology is also high.
- The company depends on third parties for the supply of raw materials. Any disruption in the supply chain will negatively affect the company’s operations.
Esconet Technologies Ltd IPO – Industry & Market Potential
Despite a massive decline in unit demand, the server market continued experiencing strong spending growth in the second quarter of 2023 with 3.4% y/y growth, driven by high ASP growth, mostly related to higher-than-usual GPU server shipments to hyperscalers.
The market faces continued challenges heading into the second half of 2023, including remnants of impact from the pandemic, historically high inflation, slowdown in economic activity, supply chain disruption, and geopolitical conflict. However, the server market has proven remarkably resilient in recent years as IT infrastructure has become increasingly mission-critical for many organizations.
The global supercomputer market is projected to increase at an impressive CAGR of 10.5% and hit a valuation of US$ 19 billion by the end of 2033, up from US$ 7 billion in 2023. Rising demand for high processing power is increasing the sales of supercomputers. High processing power refers to the processing needed to manage and process data to evaluate it and make decisions.
Esconet Technologies Ltd IPO – Type of Offer
Esconet Technologies Limited’s IPO plans a fresh issue of shares, seeking INR 28.22 crores to augment the company’s working capital needs and to invest in its subsidiary. The company will issue 33,60,000 new shares to raise capital, aiming to collect INR 28.22 crores.
Esconet Technologies Limited IPO Offer Size
The offer size of Esconet Technologies Limited’s IPO is INR 28.22 crores. The funds generated will meet working capital needs, invest in subsidiaries, and meet the general expenses.
Esconet Technologies Ltd IPO Allotment Structure
Esconet Technologies’ IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations. A portion of 1,76,000 shares are reserved for the market makers.
●Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
●Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of the issue, i.e., 1,76,000 shares, is reserved for the market makers.
How to apply for an Esconet Technologies Limited IPO?
To apply for the Atmastco Limited IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Atmastco Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Esconet Technologies IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Esconet Technologies Ltd IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Atmastco Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Esconet Technologies Limited’s IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Atmastco Limited IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited’s website, the Esconet Technologies IPO registrar. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Esconet Technologies IPO Offer Registrar
The registrar for the Esconet Technologies IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153 A, 1st Floor, Okhla Industrial Area,
Phase – I, New Delhi-110020
Tel No.: +91- 11-40450193-97
E-mail: [email protected]
Website: http://www.skylinerta.com
Esconet Technologies Limited IPO FAQs
1. What is the allotment date of the Esconet Technologies Limited IPO?
The allotment date of Esconet Technologies Limited IPO is February 21, 2024.
2. What is the price band of the Esconet Technologies Limited IPO?
The price band of the company is INR 80-84 per share.
3. What is the size of the Esconet Technologies Limited IPO?
Esconet Technologies IPO consists of a fresh issue of shares worth INR 28.22 crores. The company seeks funds to meet working capital requirements, invest in its subsidiary- Zeacloud Services Private Limited, and for general corporate purposes.
4. What is the listing date of the Esconet Technologies Limited IPO?
The listing date of Esconet Technologies Limited’s IPO is February 23, 2024.
