Pune e-Stock Broking
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Mar 2024 – 12 Mar 2024
- Listing date
- 15 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹83 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹38.23 Cr
- Market cap at offer price
- ₹130 Cr
- Promoter holding
- 72.75% → 51.34% pre-issue → post-issue
- ISIN
- INE510U01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Share India Capital Services Pvt.Ltd.
- Registered office
- 1198 Shukrawar Peth, Shubhash Nagar, Lane No 3, 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 | 11,72,800 | — | — |
| Market maker | 6,91,200 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹83
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,32,800 |
| S-HNI (min) | 2 | 3,200 | ₹2,65,600 |
| S-HNI (max) | 7 | 11,200 | ₹9,29,600 |
| B-HNI (min) | 8 | 12,800 | ₹10,62,400 |
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 |
|---|---|---|
| EPS (₹) | 8.73 | 7.04 |
| P/E (×) | 9.51 | 11.79 |
| Price to book (×) | 0.77 | — |
| Market cap | — | ₹130 Cr |
Key performance indicators
- Return on net worth
- 7.39%
- ROCE
- 8.25%
- PAT margin
- 22.90%
- NAV per share
- ₹74.79
- Price to book
- 0.77
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pune e-Stock Broking
Pune E – Stock Broking Limited (PESB) was incorporated on June 23, 2007 as Pune E - Stock Broking Private Limited and was converted into a public limited company with effect from a fresh certificate of incorporation dated January 07, 2020; during its journey, PSE Securities Limited and Vraj Share Services Private Limited were merged into the company pursuant to an NCLT-approved scheme of amalgamation. Registered with SEBI as a stock broker (member of BSE and NSE) in 2008, a member of MCX since 2019, and a self-clearing member since 2021, PESB offers client broking in equity cash, equity futures & options, currency derivatives and commodity derivatives, acts as a CDSL depository participant with 23,155 active customers, distributes mutual funds and corporate deposits, and runs digital platforms including its mobile trading app, ODIN web, internet-based trading and algorithmic (XTS) trading software. Operating from an owned registered office in Pune with leased branch offices in Delhi and Ahmedabad, a network of over 150 Authorised Persons and a trading client base exceeding 50,000, the company employed 79 people as of September 30, 2023. It earns revenue chiefly from brokerage commissions (74.30% of total income as of June 30, 2023), interest income largely from margin funding (20.56%) and investment income (4.49%); for FY2023 it reported standalone revenue from operations of ₹3,168.66 lakhs with profit after tax of ₹633.74 lakhs (consolidated: revenue from operations ₹3,575.08 lakhs, PAT ₹964.52 lakhs). Its five promoters — Vrajesh Krishnakumar Shah, Devendra Ramchandra Ghodnadikar, Vrajesh Navnitbhai Shah, Sandip Sunderlal Shah and Paresh Sunderlal Shah — together with the promoter group held 80,34,858 equity shares, aggregating to 72.75% of the pre-issue paid-up share capital.
Company Analysis
from DRHPPune E – Stock Broking Limited (PESB) is a Pune-based, SEBI-registered stock broking and financial services company offering equity, derivatives, currency and commodity broking, depository participant services, mutual fund distribution and corporate deposit placement.
Pune E – Stock Broking Limited (PESB) was incorporated on June 23, 2007 as Pune E - Stock Broking Private Limited and was converted into a public limited company with effect from a fresh certificate of incorporation dated January 07, 2020; during its journey, PSE Securities Limited and Vraj Share Services Private Limited were merged into the company pursuant to an NCLT-approved scheme of amalgamation. Registered with SEBI as a stock broker (member of BSE and NSE) in 2008, a member of MCX since 2019, and a self-clearing member since 2021, PESB offers client broking in equity cash, equity futures & options, currency derivatives and commodity derivatives, acts as a CDSL depository participant with 23,155 active customers, distributes mutual funds and corporate deposits, and runs digital platforms including its mobile trading app, ODIN web, internet-based trading and algorithmic (XTS) trading software. Operating from an owned registered office in Pune with leased branch offices in Delhi and Ahmedabad, a network of over 150 Authorised Persons and a trading client base exceeding 50,000, the company employed 79 people as of September 30, 2023. It earns revenue chiefly from brokerage commissions (74.30% of total income as of June 30, 2023), interest income largely from margin funding (20.56%) and investment income (4.49%); for FY2023 it reported standalone revenue from operations of ₹3,168.66 lakhs with profit after tax of ₹633.74 lakhs (consolidated: revenue from operations ₹3,575.08 lakhs, PAT ₹964.52 lakhs). Its five promoters — Vrajesh Krishnakumar Shah, Devendra Ramchandra Ghodnadikar, Vrajesh Navnitbhai Shah, Sandip Sunderlal Shah and Paresh Sunderlal Shah — together with the promoter group held 80,34,858 equity shares, aggregating to 72.75% of the pre-issue paid-up share capital.
Objects of the Issue
- To meet working capital requirements — funding growth in the Margin Trading Facility (MTF) book, algorithmic-based trading capabilities, and an expanded credit line supported by collateral/bank guarantee security provided to banks p.87
- General Corporate Purpose (the amount utilised shall not exceed 25% of the gross proceeds of the Issue) p.89
Issue Structure
- Total Issue
- Up to ₹ [●] Lakhs (Initial Public Offer of up to 46,06,400 Equity Shares)
- Fresh Issue
- Up to 46,06,400 Equity Shares of face value ₹10 each aggregating up to ₹ [●] Lakhs (entire issue is a fresh issue, including a Market Maker Reservation Portion of up to [●] Equity Shares)
- Offer for Sale
- Not applicable — 'NOT APPLICABLE AS THE ENTIRE ISSUE CONSTITUTES FRESH ISSUE OF EQUITY SHARES'
- Face Value
- ₹ 10/- per Equity Share
Business Model
PESB earns revenue primarily through brokerage commissions on client trades executed across the BSE/NSE cash, equity derivatives, currency derivatives and MCX commodity segments (74.30% of total income as of June 30, 2023), supplemented by interest income from margin trading funding (MTF) and credit facilities extended to clients against approved securities (20.56%), investment income on its own portfolio (4.49%), and commission & rental income; it additionally earns distribution-linked income from mutual fund schemes and corporate fixed deposits offered to investors.
Business Segments
SWOT Analysis
- • Experienced Promoters and management team(p.121)
- • Diversified yet integrated mix of financial services under one roof(p.122)
- • Long-term client relationships generating repeat business(p.122)
- • Strong, real-time integrated risk management system(p.122)
- • Wide distribution network with large client base(p.119)
- • Self-clearing membership enabling seamless trade settlement(p.119)
- • Technology-driven digital platform (trading app, eKYC)(p.120)
- • Heavy revenue concentration in few business segments(p.31)
- • Negative cash flows in FY21, FY23 and stub period June 30, 2023(p.26)
- • History of penalties imposed by SEBI and Stock Exchanges(p.27)
- • High contingent liabilities (₹3,170.00 lakh standalone as at June 30, 2023)(p.30)
- • Branch offices (Delhi, Ahmedabad) are leased, not owned(p.29)
- • Step-down insurance broking subsidiary not operational; IRDAI licence pending(p.29)
- • Borrowings secured against Promoters' personal property and personal guarantees(p.39)
- • Promoters/Promoter Group to retain majority shareholding post-Issue, enabling control of shareholder decisions(p.38)
- • Grow business through expanding client relationships(p.122)
- • Expansion into new geographies via branch offices(p.123)
- • Entry into insurance broking via IRDAI registration(p.123)
- • International expansion through IFSC registration at GIFT City(p.123)
- • Deployment of IPO proceeds into fund-based products (Margin Trading Facility, algorithmic trading, credit line)(p.88)
- • Rising retail participation and demat account openings as industry tailwind(p.107)
- • Growing margin funding book as interest-income opportunity for brokers(p.116)
- • Intense competition from larger domestic and foreign brokerage houses(p.40)
- • Market downturns/disruptions reducing transaction volumes(p.36)
- • Sensitivity to general economic and market conditions in India and globally(p.43)
- • Adverse changes in government regulations or their implementation(p.44)
- • Extensive securities regulation with risk of penalties/sanctions for non-compliance(p.37)
- • Revenues inherently inconsistent due to volatility in Indian capital markets(p.38)
- • Cyber-attack / IT-system failure risk given heavy technology dependence(p.35)
- • Reliance on Indian stock exchanges (NSE/BSE) for execution and settlement of business(p.37)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Devendra Ramchandra Ghodnadikar | Promoter | 15.47% | — |
| Vrajesh Navnitbhai Shah | Promoter | 14.80% | — |
| Vrajesh Krishnakumar Shah | Promoter (Chairman & Managing Director) | 13.19% | — |
| Sandip Sunderlal Shah | Promoter | 5.43% | — |
| Paresh Sunderlal Shah | Promoter | 5.43% | — |
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.