Galactico Corporate Services Limited IPO

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(i) They are a diversified financial services company in India, carrying out the business of management of fundraising activities, investment advisory, underwriting of issues, manager, consultant or adviser to any issue including corporate advisory services and as consultant or adviser.

(ii) They are registered as SEBI Category-I Merchant Banker having Registration Code INM000012519.

(iii) They have a team of competent individuals and qualified professionals having relevant industry experience.

(iv) They have two wholly-owned subsidiaries – namely- Seven Hills Beverages Limited (“Seven Hills”) and Instant Finserve Private Limited (“Instant Finserve”) and one indirect subsidiary Palwe Pest Control Private Limited (“Palwe Pest Control”) which is a subsidiary of Seven Hills Beverages Limited.

a) Seven Hills is presently engaged in the business of manufacturing of packaged drinking water.

b) Instant Finserve has presently engaged in financial consultancy and debt finance-related businesses.

c) Palwe Pest Control is engaged in the business of providing pest control related products and services.

(v) The company’s objective is to meet the need for professional advice and consultancy primarily to SMEs and Startups looking to access growth capital and expand their business horizons. The Investment Banking arm helps small and midsize enterprises raise equity and structured debt (domestic as well as foreign) funding.

The total income was 1,919.35 Lakhs and 1,653.94 Lakhs for the financial year 2019 and 2018 and the Profit after Tax (PAT) for the similar fiscal years mentioned above were 141.82 Lakhs and 135.13 Lakhs respectively.

Objects of the Galactico Corporate Services Limited IPO:

It is a mix of OFS and Fresh Issue. Total shares offered are 19,08,000. Out of which 16,08,000 is OFS and 3,00,000 Fresh Issue. The objectives of the Fresh Issue are to raise funds for; (a) Repayment of Unsecured loans = 50 Lakh (b) Funding expenditure for General Corporate Purposes

Galactico Corporate Services Limited IPO Details:

Open Date: Sep 24 2019
Close Date: Sep 27 2019
Total Shares: 1,608,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 3.69 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 23 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 08 2019

Promoters And Management:

The company is managed by Promoter Director Mr. Vipul Lathi, a Chartered Accountant by profession, having vast experience in financial services and infrastructure financing.

Financials of Galactico Corporate Services Limited IPO:

Year Revenue Expense PAT PAT Margin EPS
2018 1653 1461 135 8.2% 2.36
2019 1919 1716 141 7.3% 2.46

Recommendation on Galactico Corporate Services Limited IPO:

Review and Recommendation of InvestorZone is:  2/10 [ The valuation at P/E multiple of 9.34x is expensive. The company has formed in the year 2016 and promoters have come up with an IPO to sell their shares in 2019. Isn't surprising? This means promoters have less belief in their own business. Moreover, the Indian financial sector is in state of havoc since 2018]

Lead Manager of Galactico Corporate Services Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Galactico Corporate Services Limited IPO:

  1. Bigshare Services Private Limited

Bid Details of Galactico Corporate Services Limited IPO as on
27 Sep 2019 | 11:50:01 PM

Category No.of shares offered No. of shares bid
762,000 1,338,000
762,000 426,000
84,000 84,000
1,608,000 1,848,000
QIBs No
QIBs+HNIs Subscription 1.76X
Retail Subscription 0.56X
Total Subscription 1.16X

Discussion on Galactico Corporate Services Limited IPO:

    The company formed in 2016 and promoters have come up with an OFS of 13,08,000 Lakh.

    The average cost of acquisition of promoters is ~11.

    So 2x return in 3 years.

    Looks like handsome return.