Gretex Corporate Services SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Jul 2021 – 30 Jul 2021
- Listing date
- 09 Aug 2021
- Face value
- ₹10 per share
- Issue price
- ₹170 per share
- Lot size
- 800 shares
- Total issue size
- ₹5.13 Cr
- Market cap at offer price
- ₹19.33 Cr
- Promoter holding
- 100.00% → 73.48% pre-issue → post-issue
- ISIN
- INE199P01028
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- Office No.13, 1st Floor, Bansilal Mansion, 9-15, Homi Modi Street, Fort, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 15,200 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹170
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,36,000 |
| S-HNI (min) | 2 | 1,600 | ₹2,72,000 |
| S-HNI (max) | 7 | 5,600 | ₹9,52,000 |
| B-HNI (min) | 8 | 6,400 | ₹10,88,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹19.33 Cr |
About Gretex Corporate Services SME
Gretex Corporate Services Limited (GCSL) was originally incorporated as 'Dynamic Tradeserv Private Limited' on September 05, 2008 at Kolkata, West Bengal, renamed 'Gretex Corporate Services Private Limited' in May 2013, and converted into a public limited company under its present name in April-May 2021; its registered office is in Fort, Mumbai with a branch office in Kolkata. Starting out by providing project finance services through banks and financial institutions, the company entered capital-market services such as direct listing of companies in 2011, applied for a merchant banking licence from SEBI in 2013, and received permanent registration as a SEBI Category-I Merchant Banker (Registration Code INM000012177) in 2019. For the past six years it has carried out management of fund-raising activities, investment advisory, underwriting of issues and acting as manager, consultant or adviser to issues, developing expertise in identifying Small and Medium Enterprises and taking them public via IPOs on the SME Exchange in India, having successfully executed 21 SME IPOs and 1 BSE Startups Segment listing under the SME Platform of BSE Limited. It earns money through fees from advisory services, consultancy income and issue management across the equity capital market; its restated consolidated total income was ₹324.63 Lakh and profit after tax ₹61.54 Lakh for the year ended March 31, 2021. The company is promoted by Mr. Arvind Harlalka, Mr. Alok Harlalka and M/s. Bonanza Agency LLP.
Company Analysis
from DRHPGretex Corporate Services Limited is an India-based SEBI Category-I merchant banker offering diversified financial and consultancy services spanning capital markets, corporate finance, corporate restructuring, debt syndication and compliance advisory, primarily helping small and medium enterprises go public.
Gretex Corporate Services Limited (GCSL) was originally incorporated as 'Dynamic Tradeserv Private Limited' on September 05, 2008 at Kolkata, West Bengal, renamed 'Gretex Corporate Services Private Limited' in May 2013, and converted into a public limited company under its present name in April-May 2021; its registered office is in Fort, Mumbai with a branch office in Kolkata. Starting out by providing project finance services through banks and financial institutions, the company entered capital-market services such as direct listing of companies in 2011, applied for a merchant banking licence from SEBI in 2013, and received permanent registration as a SEBI Category-I Merchant Banker (Registration Code INM000012177) in 2019. For the past six years it has carried out management of fund-raising activities, investment advisory, underwriting of issues and acting as manager, consultant or adviser to issues, developing expertise in identifying Small and Medium Enterprises and taking them public via IPOs on the SME Exchange in India, having successfully executed 21 SME IPOs and 1 BSE Startups Segment listing under the SME Platform of BSE Limited. It earns money through fees from advisory services, consultancy income and issue management across the equity capital market; its restated consolidated total income was ₹324.63 Lakh and profit after tax ₹61.54 Lakh for the year ended March 31, 2021. The company is promoted by Mr. Arvind Harlalka, Mr. Alok Harlalka and M/s. Bonanza Agency LLP.
Objects of the Issue
- Payment of Security Deposit for renting of office space ₹ 255.00 lakhs p.70
- Working Capital Requirements ₹ 50.00 Lakhs p.70
- General Corporate Purposes ₹ 73.45 Lakhs p.70
Issue Structure
- Total Issue
- Public Issue of 3,01,600 Equity Shares of face value of ₹ 10 each for cash at a price of ₹ 170 per Equity Share aggregating to ₹ 512.72 Lakh
- Fresh Issue
- Fresh Issue of 2,37,600 Equity Shares aggregating to ₹ 403.92 Lakh
- Offer for Sale
- Offer for Sale of 64,000 Equity Shares by the Promoter Selling Shareholder (M/s. Bonanza Agency LLP) aggregating to ₹ 108.80 Lakh
- Price Band
- 100% Fixed Price Issue at ₹ 170 per Equity Share (including premium of ₹ 160 per Equity Share)
- Lot Size
- Market lot and Trading lot of 800 Equity Shares and in multiples of 800 thereafter; subject to a minimum allotment of 800 Equity Shares
- Face Value
- ₹ 10 each
Business Model
Fee-based financial services model: revenues are earned from fees for advisory services, consultancy income and issue management across the equity capital market — managing fund-raising activities (primarily SME IPOs), investment advisory, underwriting of issues, and acting as manager, consultant or adviser to issues including corporate advisory services.
Business Segments
SWOT Analysis
- • Promoters bring ~3 decades of collective financial-services experience(p.90)
- • Experienced professional execution team managing funding operations(p.90)
- • Proven primary-market track record: 21 SME IPOs and 1 BSE Startups Segment listing executed(p.89)
- • Registered SEBI Category-I Merchant Banker(p.89)
- • Diversified service portfolio across capital markets, corporate finance, restructuring, debt syndication and compliance advisory(p.91)
- • Long-term client and intermediary relationships underpin the business(p.91)
- • Quality service has built goodwill and added customers over six years(p.91)
- • MD's AIBI directorship gives access to large financial-services players(p.90)
- • Heavy customer concentration — top 10 clients contributed ~92% of FY2020-21 revenue(p.30)
- • Limited operating history of only ~6 years in merchant banking(p.24)
- • Outstanding legal proceedings involving Company, Promoters, Directors and Group Companies (incl. 17 direct-tax cases on Promoters of ₹2,21,42,004)(p.23)
- • Incurred a loss in FY 2019-20 (restated PAT of ₹(160.35) lakh)(p.29)
- • Negative cash flows from operating and investing activities in prior years(p.26)
- • Total outstanding indebtedness of ₹250.30 lakhs, secured by charge over immovable properties, with restrictive covenants(p.32)
- • 'GRETEx' trademark is registered in the name of group company Gretex Industries Limited and used only under an NOC(p.25)
- • Key group companies (Gretex Industries, Gretex Share Broking) are loss-making(p.27)
- • Sharp growth in primary-market fundraising (+116% in 2020) expands the issue-management pipeline(p.82)
- • Strategy to deepen position in the growing IPO/issue-management and corporate advisory space(p.91)
- • Geographic expansion beyond Mumbai/Kolkata, domestically and globally, to grow client base and revenues(p.92)
- • Strategic acquisitions and technology alliances to access new clients, sectors and capabilities(p.92)
- • Rising retail participation offers a large untapped market in Indian capital markets(p.84)
- • Indian financial services sector undergoing rapid expansion with new entrants(p.18)
- • Capital-market downturns directly reduce transaction volumes, fees and profitability of the merchant-banking business(p.36)
- • Intense competition from other financial advisors/merchant bankers, some with substantially greater resources(p.25)
- • Continuing, unpredictable impact of the COVID-19 pandemic on operations(p.35)
- • Government regulations governing the business can change/amend at short notice(p.36)
- • Adverse general economic and market conditions in India and globally(p.35)
- • Financial instability/contagion in Indian financial markets(p.37)
- • Industry malpractices trigger stricter norms that apply to all players, hurting emerging companies(p.36)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Arvind Harlalka | Promoter | 1.83% | 1.45% |
| Mr. Alok Harlalka | Promoter | 0.25% | 0.20% |
| M/s. Bonanza Agency LLP (Previously known as Bonanza Agency Private Limited) | Promoter & Promoter Selling Shareholder | 75.94% | 54.45% |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.