East India Securities Limited IPO

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East India Securities Limited IPO Stock Quote & Charts

952.00

+0.32%

  • Open: 952.00
  • High - Low: 952.00 - 952.00
  • Previous Close: 949.00
  • Total Traded Volume: 160
  • Updated On: 30-Oct-2018

Objects of the East India Securities Limited IPO:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the SME Platform of BSE and to carry out the sale of 10,08,000 Equity Shares by the Selling Shareholders. The listing of the Equity Shares will enhance the company brand name and provide liquidity to the existing shareholders. The listing of the Equity Shares will also provide a public market for the Equity Shares in India

East India Securities Limited IPO Details:

Open Date: Mar 05 2018
Close Date: Mar 07 2018
Total Shares: 10,08,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Lot Size: 160 Shares
Issue Price: ₹ 920 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 13 2018

Promoters And Management:

1. Mr. Vivek Agarwal, aged 46 years, is the Promoter and Chairman of our Company. Mr. Agarwal is a B. Com (Hons) graduate and is on the Board of our Company since incorporation. He is very well known in financial markets and is often invited as a speaker at various seminars on Futures & Options, Capital Markets and Finance. He is having overall experience of 21 years. He has served on various committees formed by the BSE and NSE including on issues ranging from Settlement Issues, Dispute Resolution, Advisory, and Executive Committee. Committee. He is very well read on stock market corporate analysis and is a believer in the investment theories of Warren Buffet, Peter Lynch and Graham. 2. Mr. Sanjay Kumar Shroff, aged 47 years is the Managing Director of our Company. He has been managing day to day affairs of the company since taking charge as director and having a vast experience of more than 20 years. 3. Mr. Tapas Kumar Maity, aged 49 years is the Whole Time Director of our Company. He has been managing DP office and affairs of the company since taking charge as director and having a vast experience of more than 19 Years in the field of Depository Participants. 4. Ms. Kirti Kothari aged 29 yearsis the Additional Independent Women Director of our Company. She is Practicing Chartered Accountant by Profession Since 2014 carrying his own Firm in the name of K. Kothari & associates. 5. Mr. Tarit Kumar Bhaumik aged 75 years is the Additional Independent Director of our Company. Mr. Bhaumik began his professional journey as Industrial Engineer with erstwhile British multinational engineering Industry in India, GKW Ltd after graduation in Mechanical engineering from BE College, Sibpore. He was actively involved in quality circle movement of CII & presided over as the chairman of the jury of national award competition heldin Kolkata. He had been a guest speaker for Advanced Management Development programme organized by IIM Kolkata. He was associated with ILO as resource person attending seminers in Pakistan, India & Bangladesh. 6. Mr. Adrish Ray aged 53 is the the Additional Independent Director of our Company. He is having more than experience of more than 32 Years in the field of Accounts and Taxation.

Company Business:

Our Company was incorporated as “East India Securities Private Limited” with the Registrar of Companies, West Bengal, on June 08, 1995, as a Private Limited Company. Subsequently, upon conversion to a Public Limited Company, “East India Securities Limited”, a fresh Certificate of Incorporation was issued by the Registrar of Companies, West Bengal, on August 13, 1999. Our Company is currently engaged in the business of Broking (Equity and Equity Derivatives, Currency and Commodity Derivatives). We are one of the largest Clearing Member for Equity Derivatives in NSE, and Currency Derivatives in NSE/MCX/USE in Eastern India. We also provide services as a Depository Participant (NSDL/CDSL); Distributor (Mutual Funds, Primary Issuer of Equity and Fixed Income Securities); and play an Advisory role in Corporate Financing and Risk Management. We are a member of the: Capital Market segment of NSE of India since 1995; Equity Derivates segment of NSE since 2000; Currency Derivates segment of NSE since 2008; Capital Market segment of BSE since 2005; Equity Derivatives segment of BSE since 2005. We have the distinction of executing the first ever Exchange Traded Index Option contract in India on June 4, 2001, when NSE had launched its Nifty options segment. Subsequently, on November 9, 2001, we became the first company to trade Future Contract on individual stock futures on NSE. We have also have the distinction of executing the first Currency Future contracts and Currency Options contract on NSE at launch. Our Company also has the membership of NSDL since 1997, and CDSL since 2000. We were one of the pioneering Depository Participants of NSDL and helped usher in the revolutionary concept of the paperless settlement of securities transactions in India. With over 125 active CM Pool Accounts, and over 1456 active corporate clients, we handle over 1,000 instructions per day. We received permanent registration from SEBI as Participant of the NSDL and CDSL depositories in the year 2015. To expand our business operations, and with a particular focus on trading and broking for Institutional and High Networth clients, our branch office in Mumbai has a dedicated Institutional Equities desk with Research, Dealing and Sales teams in place, each headed by professionals with over 14 years of experience in capital markets, providing quality research inputs and ideas on market and stock related developments. Our clients include Public/Private Banks, Insurance companies, Domestic Mutual Funds, AIFs and FPIs. EISL's Debt desk is headed by professionals with over 15 years of experience in Fixed Income Vertical, and we are a member of the Wholesale Debt Market (WDM) segment of the NSE and BSE, catering to Banks, Financial Institutions, Mutual Funds, Insurance companies, Retirement trusts, Corporates, HNI and Retail clients. We are one of the few brokers who has successfully participated in the auction of debt investment limits for FPIs. Our Company has ventured into Corporate Financing Vertical covering: Debt raising, Credit Rating Advisory, Factoring services, Promoter funding and Structured Products. We help clients cut their cost of funding, and price and manage their risks. EISL is one of the largest market maker for ETFs in India and formally recognized by the NSE. Our robust technology platform enables us to provide efficient market making for various securities. We are able to provide/absorb large ETF flows of up to 25 Crores. We work closely with Mutual Funds like Reliance, UTI, HDFC, IICI, Prudential, IDFC, Invesco, LIC Nomura, DSP Blackrock as their authorized market maker for their suite of ETFs. EISL has a strong presence in the IRF segment with ~9% of the overall market share across all exchanges put together, and ~30—35% market share on the Institutional side. We are present in all three exchanges and are DMA enabled brokers for NSE and BSE. We currently deal with large Institutional investors and undertake research covering Daily/Weekly/Monthly analysis highlighting important parameters like Volume, Open Interest, Implied Cost of carrying, etc. in our efforts to keep our clients constantly updated on all aspects of the IRF market and to disseminate timely information. We are also engaged in the business of Mutual Fund Advisor/Distributor and are a member of AMFI. Our Company is 38 engaged in making proprietary investments in various tradable securities. We invest in both securities and derivatives with sufficient liquidity. Our investment strategies are mainly focused on earning arbitrage gain based on analysis and investment rationale.

Capital Structure:

Authorized Share Capital (50,00,000 shares at FV@10) 500 Lakhs
Issued, Subscribed,& Paid-up Share Capital Before Issue (3,667,000 Shares at FV@10) 366.7 Lakhs
Present Issue is OFS (10,08,000 Shares at FV@10) 100.80 Lakhs
Reservation for Market Maker (50,400 Shares at FV@10) 5.04 lakhs
Net Issue to Public (10,08,000-50400=9,57,600 Shares) 95.76 Lakhs
Retail Quota(<2 Lkah)[4,78,880 Shares] 50%
HNI & QIB Quota(>2 Lakh)[4,78,880 Shares] 50%
Paid Up Capital after the issue 366.7 Lakhs
Average cost of Acquisition of promoters
Sr.no Name of the Promoter No. of shares Average cost of aquistion
1 Mr.Vivek Agarwal 1472100 10.81
2 Mr. Lakshmendra Kumar Agarwal 1566900 11.53
Mr Vivek Agarwal and Mr. Lakshmendra Kumar Agarwal vide this IPO are selling their own 10,08,000 shares to public at a price of Rs.920 . Net approximately profit to Promoters =(5,04,000*909.19+5,04,000*908.57) is 90 cr.    

Financials of East India Securities Limited IPO:

 1. Balance Sheet Snippet[ All Calculations are for FY 16-17]
       (i) Shareholders’ Fund[Equity] Value 261.11 cr
      (ii) Asset 283.79 cr
      (iii) Liability 22.69  cr
      (iv) Debt/Equity 0.086( debt free)
      (v)  Net Worth(Asset- Liability) 261.11cr
     (vi)  RONW(PAT/Net Worth) 10%
2. Profit n Loss Snippet[ All Calculations are upto Mar 17]
     (i) Revenue of last 5 years is growing at approx. CAGR of 5.43%.
    (ii) As far as PAT goes, the company is growing at CAGR of 23.35%.
    (iii)Margins(PBT/Reveune):  76%( Excellent Growth)
    (iv) EPS= 102( post Issue)
    (v)  P/E=9(post issue)at the issue price of 920
3. Cash Flow Statement
  The company cash flow is not consistent over the years.

Recommendation on East India Securities Limited IPO:

Apply for long term as well as good listing gain.

Lead Manager of East India Securities Limited IPO:

  1. Finshore Management Services Limited

Registrar of East India Securities Limited IPO:

  1. Cameo Corporate Services Limited

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

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