Vedant Asset SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2022 – 04 Oct 2022
- Listing date
- 12 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹40 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹3 Cr
- Market cap at offer price
- ₹11.05 Cr
- Promoter holding
- 99.99% → 72.83% pre-issue → post-issue
- ISIN
- INE0NC801013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 3 rd Floor, Gayways House, Pee Pee Compound, Jharkhand
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 42,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹40
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 0.69 | — |
| P/E (×) | 57.97 | — |
| Market cap | — | ₹11.05 Cr |
Key performance indicators
- Return on net worth
- 6.05%
- NAV per share
- ₹11.34
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vedant Asset SME
Vedant Asset Limited, incorporated in 2015 and converted to a public limited company in June 2022, is engaged in banking correspondent services and mutual fund distribution. The company operates as a Corporate Business Correspondent (BC) for Bank of India, Jharkhand Rajya Gramin Bank (JRGB), and Madhya Pradesh Gramin Bank (MPGB). Through its Vedant Mitra Kendra network of more than 350 partners, it provides banking services, Aadhaar-enabled payment systems, direct money transfers, mutual fund investments, insurance services, loan services, and ticketing services in rural and semi-urban locations. The company generates revenue through commission-based services and has recently ventured into mobile ATM (mATM) business.
Company Analysis
from RHPVedant Asset Limited operates as a Corporate Business Correspondent for multiple banks and provides mutual fund distribution through a network of Vedant Mitra partners in rural and semi-urban locations across Jharkhand and Madhya Pradesh.
Vedant Asset Limited, incorporated in 2015 and converted to a public limited company in June 2022, is engaged in banking correspondent services and mutual fund distribution. The company operates as a Corporate Business Correspondent (BC) for Bank of India, Jharkhand Rajya Gramin Bank (JRGB), and Madhya Pradesh Gramin Bank (MPGB). Through its Vedant Mitra Kendra network of more than 350 partners, it provides banking services, Aadhaar-enabled payment systems, direct money transfers, mutual fund investments, insurance services, loan services, and ticketing services in rural and semi-urban locations. The company generates revenue through commission-based services and has recently ventured into mobile ATM (mATM) business.
Objects of the Issue
- Financing the expenditure for Business Expansion ₹107.40 Lakhs p.19
- To meet Working Capital requirements ₹130.00 Lakhs p.19
- General Corporate Purpose ₹21.60 Lakhs p.19
- Issue Expense ₹41.00 Lakhs p.19
- Financing the expenditure for Business Expansion ₹107.40 lakhs p.61
- To meet working capital requirements ₹130.00 lakhs p.61
- General Corporate Purpose ₹21.60 lakhs p.61
- To meet issue expenses ₹41.00 lakhs p.61
- General corporate purposes
Issue Structure
- Total Issue
- ₹300 Lakhs
- Fresh Issue
- ₹300 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹40 per Equity Share
- Lot Size
- 3000 equity shares
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through fee-based activities including commissions from banking correspondent services, mutual fund distribution commissions, and various service charges. Revenue is generated from transaction-based fees charged to banking partners and asset management companies, as well as from providing customer services at Vedant Mitra Kendra locations.
Business Segments
SWOT Analysis
- • Established partnerships with major banking institutions(p.19)
- • Diversified revenue streams across financial services(p.19)
- • Significant growth in mutual fund distribution AUM(p.19)
- • Revenue growth trajectory(p.20)
- • Improved profitability(p.20)
- • Debt reduction achievement(p.20)
- • Strong banking partnerships across multiple geographies(p.78)
- • Established distribution network with 350+ Vedant Mitra partners(p.82)
- • Multi-product service offering at single location(p.81)
- • Experienced promoters with 25+ years combined financial services experience(p.82)
- • Integration with multiple mutual fund houses(p.81)
- • Award-winning promoter with industry recognition(p.82)
- • Established banking correspondent network across rural and semi-urban areas(p.144)
- • Significant assets under management in mutual fund distribution(p.144)
- • Experienced promoter team with 25+ years in financial services(p.144)
- • Industry recognition and awards(p.144)
- • Debt-free capital structure with zero borrowings(p.151)
- • Positive net worth and consistent profitability growth(p.162)
- • Heavy dependence on limited banking partners(p.23)
- • Lack of control over partner operations(p.25)
- • Geographic concentration risk(p.25)
- • No property ownership for registered office(p.29)
- • Trademark registration challenges(p.29)
- • Limited insurance coverage(p.31)
- • Negative operating cash flows(p.30)
- • Related party transaction risks(p.31)
- • Concentration of promoter shareholding with limited public ownership post-IPO(p.56)
- • Small company size with limited employee base(p.84)
- • Geographic concentration in Jharkhand and Madhya Pradesh(p.79)
- • Dependence on banking partner relationships with no diversity guarantee(p.78)
- • Limited scale compared to organized financial services competitors(p.83)
- • High concentration of revenue from brokerage and commission income(p.146)
- • Dependence on mutual fund house partnerships(p.144)
- • Small company size with limited paid-up capital(p.162)
- • Limited employee base and organizational scale(p.147)
- • Operational challenges and organizational development(p.113)
- • Expansion of Business Correspondent network(p.27)
- • Entry into mobile ATM business(p.26)
- • Development of proprietary technology platform(p.27)
- • Expansion to Central India(p.27)
- • Growing mutual fund industry AUM(p.19)
- • Expansion into digital banking services through mATM and POS(p.78)
- • Growth in rural financial inclusion and BC channel expansion(p.75)
- • Expansion of branch and business correspondent network(p.62)
- • Government DBT and subsidy disbursement opportunities(p.78)
- • Growing mutual fund industry AUM with retail penetration potential(p.74)
- • Vedant Pay software and API development for enhanced digital offerings(p.62)
- • Expansion into micro-ATM and digital banking services(p.144)
- • Distribution of government subsidies and DBT schemes(p.144)
- • Growth in rural and semi-urban financial inclusion market(p.144)
- • Expansion of geographical reach into new regions(p.162)
- • Deepening mutual fund distribution and increasing product offerings(p.144)
- • Termination risk of banking partnership agreements(p.23)
- • Changing consumer preferences away from intermediary services(p.24)
- • Reputational risk from banking partner failures(p.24)
- • Regulatory changes affecting business operations(p.26)
- • Tax policy and regulatory changes(p.33)
- • Macroeconomic slowdown impact(p.33)
- • Financial market instability(p.33)
- • Competition from direct banking channels(p.24)
- • Intense competition from organized and unorganized financial service providers(p.83)
- • Dependence on banking partners' policies and regulatory compliance requirements(p.88)
- • Regulatory changes affecting mutual fund distribution and commission structures(p.86)
- • Vulnerability to banking sector cyclicality and external shocks(p.72)
- • Dependence on rural and semi-urban markets sensitive to economic conditions(p.82)
- • Regulatory complexity and compliance burden across multiple regulatory bodies(p.85)
- • Dependence on government policy and regulatory changes(p.145)
- • Rapid technological change and competition from fintech players(p.145)
- • Regulatory changes affecting mutual fund distribution and banking services(p.145)
- • Macroeconomic volatility and market conditions(p.145)
- • COVID-19 pandemic impact on business operations(p.145)
- • Competition and loss of business to established players(p.148)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Lallit Tripathi | Promoter | 37.82% | 27.55% |
| Mrs. Priyanka Maheshwari | Promoter | 20.28% | 14.77% |
| Lallit Tripathi HUF | Promoter Group | 34.80% | 25.35% |
| Mrs. Rama Tripathi | Promoter Group | 7.08% | 5.16% |
| Mr. Triloki Nath Tripathi | Promoter Group | 0.01% | 0.01% |
| Mr. Lallit Tripathi | Promoter | 37.82% | 27.55% |
| Mrs. Priyanka Maheshwari | Promoter | 20.28% | 14.77% |
| Lallit Tripathi HUF | Promoter Group | 34.80% | 25.35% |
| Mrs. Rama Tripathi | Promoter Group | 7.08% | 5.16% |
| Mr. Lallit Tripathi | Promoter/Chairman & Managing Director | 37.82% | — |
| Mrs. Priyanka Maheshwari | Promoter/Non-Executive Director | 20.28% | — |
Leadership
Auto-extracted from the company's RHP 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 RHP before relying on it.