Beacon Trusteeship Limited IPO

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Beacon Trusteeship Limited was incorporated as a Public Limited Company on December 23, 2015, under the Companies Act, 2013. Registered with SEBI (Registration No. IND000000569), they provide a broad spectrum of trusteeship services across various sectors, including Debenture Trustee Services, Security Trustee Services, Trustee to Alternate Investment Funds (AIF), Trustee to ESOP, Securitization Trustee, Bond Trusteeship Services, Escrow Services, Safe keeping, and other allied services.

Their company is managed by a team of professionals with extensive experience in investment banking, finance, debt syndication, and financial services. They act as intermediaries between issuers and investors, offering services that include due diligence, custodial services, compliance monitoring, documentation, disclosures, and record-keeping. Their role is pivotal in maintaining investor confidence by safeguarding their interests and promoting transparency and accountability.

Leveraging technology and a dedicated legal and compliance team, they execute transactions tailored to their clients’ needs. Their proprietary ERP System, securitization platform, and Covenant Monitoring Tech Platform enhance efficiency and client experience. As an ISO/IEC 270001:2022 certified company, they ensure robust information security management.

Their company has expanded its presence by opening a business office at GIFT City, an International Financial Services Centre (IFSC), to extend their reach and leverage regulatory advantages. They operate in over 15 cities across India, including major locations like Mumbai, Delhi, Chennai, Hyderabad, Jaipur, Bangalore, Chandigarh, Indore, Kolkata, Lucknow, and Gandhinagar.

In their role as Debenture Trustee, they enter formal agreements with issuers of debentures, ensuring compliance with SEBI regulations and performing due diligence and periodic monitoring. As trustees to AIFs, they handle the appointment of investment managers, trust fund maintenance, SEBI registration applications, and confidentiality of investments.

As a Securitization Trustee, they oversee trusts for securitization, manage receivables, and ensure compliance with trust agreements. They also act as Escrow and Monitoring agents, ensuring that remittances from escrow accounts adhere to specified agreements.

Their company adheres to strict confidentiality regarding client information, using a Structured Digital Database (SDD) to monitor Unpublished Price Sensitive Information in compliance with SEBI regulations. While they are not responsible for losses unless due to their negligence or misconduct, they are committed to protecting lenders’ interests and may engage in judicial proceedings to enforce security and realize dues.

They plan to invest in technological infrastructure, expand service operations both domestically and internationally, acquire Beacon RTA Services Private Limited as a wholly-owned subsidiary, and invest in obtaining licenses for Depository Participant and Registrar & Share Transfer Agent services.

Objects of the Beacon Trusteeship Limited IPO:

The Net Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. Building Up Technology Infrastructure for existing business. ii. Acquisition of Beacon RTA Services Private Limited and Making it a wholly owned subsidiary company thereon to commence the services of Depository Participant and Registrar & Share Transfer Agent. iii. Purchase of New Office Premises. iv. General Corporate Purpose. Total number of shares issues :- i. Fresh issue is 3,872,000 shares, ii. Offer for sale is 1,548,000 shares.
DRHP of Beacon Trusteeship Limited IPO
RHP of Beacon Trusteeship Limited IPO

Beacon Trusteeship Limited IPO Details:

Open Date: May 28 2024
Close Date: May 30 2024
Total Shares: 5,420,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 32.52 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 57 - 60 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 04 2024

Promoters And Management:

Mr. Pratapsingh Indrajitsingh Nathani, 51, is the Chairman, Managing Director, and Promoter of the Company. He holds a Bachelor's degree in Economics (Honors) from Gujarat University. With over two decades in the Financial Services sector, he has extensive experience in retail bonds, debt for Government Institutions, and Loan Syndication at firms like Apple Finance, Centrum, Darashaw, JM Morgan Stanley, JM Financial, and ING Vysya Bank. In December 2015, after ING's banking unit was sold to Kotak Bank, he founded Beacon Trusteeship Ltd. Mr. Kaustubh Kiran Kulkarni, 41, is the Executive Director and Compliance Officer – DT of the Company. He holds a Bachelor's degree in Mechanical Engineering from the University of Pune and a Post Graduate Diploma in Business Administration from the Indo German Training Centre, Mumbai. With over 17 years of experience in business development, compliance, operations, product development, digitization, management consulting, research, investment banking, and debt syndication, he excels in providing effective solutions to clients. At Beacon, he leads operations for Debenture Trustee, Security Trustee, and Securitization, aiming to develop an integrated platform for trustee processes to enhance client experience with improved reporting tools and data access. Mr. Sanjay Bhasin, aged 59 years is the Non-Executive Director of the Company. He has completed his Bachelor of Commerce from University of Delhi in 1986. He has also passed the final examination of The Institute of Cost and Works Accountants of India in 1988. He has also completed his Post Graduate Diploma in Management from the Indian Institute of Management in 1988. With more than three decades in Financial Services with a penchant for diverse businesses in unfamiliar territories, Mr. Bhasin is an experienced leader who has run large and complex businesses in India, UK and West Africa. He has managed varied asset classes in these geographies as well as those domiciled in US and Europe.

Financials of Beacon Trusteeship Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 1,003 1,481 1,992
Other Income 46 92 100
Total Revenue 1,049 1,572 2,091
Employees Benefit Expenses 340 622 743
Other Expenses 177 360 561
EBITDA 532 590 787
OPM (%) 50.69% 37.51% 37.64%
Depreciation & Amortisation 34 57 82
EBIT 498 533 705
Finance Cost 10 0 0
PBT 490 535 707
Tax 129 150 191
PAT 362 385 516
NPM (%) 34.47% 24.46% 24.69%
No.of Shares 180.64 180.64 180.64
EPS 2.00 2.13 2.85

Comparison With Peers:

Note :- There are no listed companies in India that engage in a business similar to this Company.

Recommendation on Beacon Trusteeship Limited IPO:

Review and Recommendation of Beacon Trusteeship by team IZ is 3/10. 1. Beacon Trusteeship offers a comprehensive range of trusteeship services across various sectors, including Debenture Trustee Services, Security Trustee Services, Trustee to Alternative Investment Fund (AIF), Trustee to Employee Stock Ownership Plans (ESOP), Securitization Trustee, Bond Trusteeship Services, Escrow Services, and Safe Keeping services. 2. Beacon Trusteeship acts as an intermediary between issuers and investors, ensuring due diligence, custodial services, compliance monitoring, documentation, disclosures, and record-keeping. 3. Beacon Trusteeship has expanded its presence to more than 15 cities in India, including major hubs such as Mumbai, Delhi, Chennai, Hyderabad, Jaipur, Bangalore, Chandigarh, Indore, Kolkata, Lucknow, and Gandhinagar. The company recently opened an office at Gujarat International Finance Tec-City (GIFT), an International Financial Services Centre (IFSC), to enhance its reach and obtain regulatory advantages. 4. Service Offerings :- i. Debenture Trustee Services         ii. Trustee to Alternative Investment Fund (AIF) iii. Securitization Trustee                 iv. Escrow Services 5. SWOT Analysis :- Strengths i. Promoter Backed Management                 ii. Marquee Client Base iii. Regulatory Compliance                             iv. Brand Recognition and Reputation v. Expertise                                                       vi. Technology vii. Business Model Weaknesses i. High Costs                      ii. Complex Regulations                iii. Competition Opportunities i. Growing Demand                                        ii. Expanding Offerings iii. New Markets                                             iv. Positive Industry Outlook Threats i. New Regulations               ii. Economic Downturn            iii. Technology Disruption 6. Competition Beacon Trusteeship faces competition from both national and international players. Despite minimal entry barriers, the company maintains steady growth due to its strategic operational and financial policies. The competitive landscape underscores the importance of providing quality services and maintaining economic pricing to attract and retain clients. 7. The Revenue has Increased from Rs.10 Crores in FY22 to Rs.20 Crores in FY24. 8. The EBITDA has Increased from 5 Crores in FY22 to 7 Crores in FY24. 9. The PAT has Increased from 3 Crores in FY22 to 5 Crores in FY24. 10. As per FY24, CFO/EBITDA is 0.64, and EPS is 2.85, 11. Market Capitalization is 108 Crore and P/E is 20.99x based on FY24

Lead Manager of Beacon Trusteeship Limited IPO:

  1. Beeline Broking Limited

Registrar of Beacon Trusteeship Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Beacon Trusteeship Limited 7A & B, Siddhivinayak Chambers, Opp MIG Cricket Club, Gandhi Nagar, Bandra (East) Mumbai, Bandra - 400051 Phone: +91 95554 49955 Email: ipo@beacontrustee.co.in Website: https://beacontrustee.co.in/

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