E2E Networks Limited IPO

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E2E Networks Limited IPO

(i) E2E Networks Limited was originally incorporated and registered as Private Limited Company on 20th August, 2009 E2E Networks Limited is in the business of, providing Cloud Infrastructure in India. Since inception in 2009, Company has strives to attain technical innovation in the Cloud migration and Deployment for clients. The company launched contract-less computing in India, way back in 2009. We followed this up by launching our hourly billed pure SSD (Solid-State-Drive) public cloud and private cloud. Our Cloud Infrastructure has been used by many well-known companies across industries like E-Commerce, Digital Classified, BFSI and a whole host of new-age digital businesses.

(ii) Using our experience in implementing and managing infrastructure we have built our full cloud agnostic Cloud Operation Management (CloudOps) platform, which can directly use the hypervisor host machines on more than 2,000 public clouds across the world. Many of India’s best-known digital businesses have been using our CloudOps platform to boost measurable performance, while at the same time reducing their cloud spend. Our CloudOps platform uses a unique blend of automation delivered via technology combined with human intelligence, to drastically reduce the workload of your in-house DevOps team by freeing them from the worry of managing basic issues related to the normal course of business. The Information Security Management system of our company and the Data Center for providing of cloud computing services, Management of information security for managed cloud and infrastructure services,
Infrastructure-as-A-Service, Disaster Recovery & Availability Services, Managed storage and Data vaulting services and application hosting services delivered through private, public and hybrid cloud delivery model is ISO/IEC 27001:2013 certified. We provide our services under the brand name of “E2E” Our company provides its services through Third Party Data Centers situated at Noida, Mumbai, and Vellore.
Company Products
1. Cloud Infrastructure
2. Managed Service (CloudOps):
Competitive Strenghts
1. Focus on Quality and Innovation
2. Our Experienced Management
3. A wide range of products
4. Existing relationship with the clients
5. Round the clock Operation center (24*7)

Investor Presentation

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E2E Networks Limited IPO Stock Quote & Charts

89.00

+0.34%

  • Open: 90.00
  • High - Low: 90.00 - 89.00
  • Previous Close: 88.70
  • Total Traded Volume: 4000
  • Updated On: 16-Aug-2018

Objects of the E2E Networks Limited IPO:

Objectives of

E2E Networks Limited IPO

are: The Offer for Sale: The Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder. The Fresh Issue  a. Working Capital requirements b. General Corporate Purposes

E2E Networks Limited IPO Details:

Open Date: May 03 2018
Close Date: May 07 2018
Total Shares: 38,58,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fresh Issue + OFS
Issue Size: 21.99 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 57 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 15 2018

Promoters And Management:

Promoters of E2E Networks Limited Company are: (i) Tarun Dua, aged 38 years, is the Promoter and Managing Director of our Company. He holds a degree of Bachelor of Technology (Computer Engineering) from REC Kurukshetra University. He has experience of more than 16 years in the field of Open source, Linux, virtualization, Internet Scale Data centers, Networks Operations, Techno-commercial wizard and Cloud Computing Domain. He has been the director of our Company since Incorporation. He manages the overall operation of the company. He plays a key role in formulation and implementation of a Business strategy for growth & expansion of the business and has been the front face of the company in dealing with suppliers, vendors, customers, etc. and he will continue with his current role and responsibilities after the conclusion of the public issue. (ii) Srishti Baweja, aged 35 years, is the Promoter and Whole-Time Director of our Company. She is an active member of the Institute of Chartered Accountants of India. She has experience of more than 13 years in the field of Finance and Administration. She is also in the change of overall operations and management of the company along with Tarun Dua. She makes major decisions as regards the formulation and implementation of business and operational policies.

Capital Structure:

 
(i) Authorized Share Capital ( 1,65,00,000 shares at FV@10) 16.5 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (1,14,95,110 Shares at FV@10) 11.495 Cr
(iii) Present Issue ( 38,58,000 Shares at FV@10) 1.4 Cr
(iv) Offer for Sale of 11,08,000 Shares 1.108 Cr
(v)Fresh Issue of Shares 27,50,000 2.75 Cr
(vi) Reservation for Market Maker  (1,94,000 Shares at FV@10) 19.4 Lacs
(vii) Net Issue to Public (38,58,000-1,94,000=  36,64,000 Shares) 3.664 Cr
(viii) QIB & HNI Quota-18,32,000 50%
(ix) Retail Quota- 18,32,000 50%
(x) Paid Up Share Capital after the issue 14.245

Financials of E2E Networks Limited IPO as per DRHP:

 1. Balance Sheet Snippet[ Financials as of Dec 2017]
       (i) Shareholders’ Fund[Equity] Value 1623.03 Lacs
      (ii) Asset 2298.12 Lacs
      (iii) Liability 675.09 Lacs
      (iv) Debt/Equity[<1 ideal] 0.41
      (v) Current Ratio[>1.5 ideal] 1.75
      (v)  Net Worth[Asset- Liability] 1623.03 Lacs
     (vi)  RONW[PAT/Net Worth] or ROE 32%[ Excellent]
2. Profit n Loss Snippet (i) The Reveune of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 76.99%[excellent] (i) The PAT of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 100.16%[ Excellent]. (iii) The EBITDA Margins of the company for FY13( 31.5%), FY14(29%), FY15(48%), FY16(60%) and FY17(57%). The company's EBITDA margins are almost doubled in last 5 years. (iv) P/B(post issue)= 5.18 (v) Annualized EPS(post issue)= 4.93 (vi) Annualized P/E(post issue)=11.56 at the cutoff price of 57
3. Cash Flow Statement(all figures in lacs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation 1372.49 1296.39 479.66 157.59 112.41
(ii) Net Cash Generated from Investment -1072.52 -1275.41 -838.15 -197.52 -107.31
(iii) Net Cash Generated from Financing Activity -172.43 -0.37 370.67 48.79 -0.61
(iv) Total[ (i)+(ii)+(iii) ] 127.54 20.61 12.18 8.86 4.49
(v) Cash and Cash Equivalents at the Beginning of the Year 77.76 39.15 26.96 18.11 13.6
(vi) Cash and Cash Equivalents at the end of the Year 205.3 59.76 39.14 26.97 18.09
 

Comparison With Peers:

Name of the Company FV EPS PE RONW
E2E Networks Limited 10 4.93 11.56 32%
8K Miles Software Services 10 0.74 953 2.74%

Recommendation on E2E Networks Limited IPO:

Review and Recommendation of

E2E Networks Limited IPO

from our side is: Rating: 7/10. 1-5: Fair 5-7: Good 7-10: Excellent .

Lead Manager of E2E Networks Limited IPO:

  1. Holani Consultants Private Limited

Registrar of E2E Networks Limited IPO:

  1. Link Intime India Private Limited

Company Address:

282, Sector-19, Faridabad, Haryana- 121002 Phone No.: +91 11-3001-8095 E-mail:srishti.baweja@e2enetworks.com Website:www.e2enetworks.com

Bid Details of E2E Networks Limited IPO as on
07-May-2018 18:00:01 IST

Category No.of shares offered No. of shares bid
1,832,000 245,920,000
1,832,000 24,924,000
194,000 194,000
3,858,000 271,038,000
QIBs Yes
QIBs+HNIs Subscription 130.82X
Retail Subscription 13.60X
Total Subscription 70.20X

Discussion on E2E Networks Limited IPO:

    Just now read the e2e rhp.. only 2 negative things I came across.. one is md and his wife taking 9 lacs as monthly salary put together, 30 bonus shares issued for every one share during February.. except this all r high positives..
    Company is having a very good operational cash flow, debt free, huge profit margin percentage etc etc.. even the depreciation is more than the profit which is actually not a cash expenses.. so the real profit is on very higher side.. only thing I couldn’t understand is company is sitting on huge cash and what’s the necessity for ipo and where they are going to utilize this money.. overall a very good ipo for investment..

    E2E Networks backers – Blume Ventures along with angel investor Freeman Murray and others will continue to be stakeholders in the company. These investors are slated to make hefty returns whenever they decide to dilute stakes.
    The Delhi-based company has been offering Low latency Dedicated and VPS Servers in India since 2009. It delivers solutions for hosting web and enterprise applications.
    Clientele base including CarDekho, Jabong, and Medianama amongst hundreds of others.
    E2E Networks IPO is indeed a great feat for the decade-old company that claims profitability from the very first year. At the same time, an unflinching faith of early-stage investors Blume Ventures and other angels in the company is laudable.