Pune E-Stock Broking Limited IPO

Apply 0
Avoid 0

Pune E – Stock Broking Limited (PESB), established in 2007, has emerged as a significant entity in the Indian financial services sector. The journey of PESB is a narrative of strategic mergers, technological advancements, and an unwavering commitment to service expansion. This profile delves into the milestones that have characterized PESB’s growth, driven by the visionary leadership of founders like Mr. Vrajesh Krishnakumar Shah and Mr. Devendra Ramchandra Ghodnadikar.

Strategic Growth and Expansion

PESB’s path has been marked by continuous adaptation and growth, securing a pivotal registration with SEBI as a Stock Broker in 2008. The expansion into commodity trading in 2019 as a member of The Multi Commodity Exchange of India Limited (MCX) and the transition to a “Limited” entity in 2020 are significant highlights. These steps, coupled with the launch of innovative trading platforms and the transition to a self-clearing member in 2021, underscore PESB’s evolution in the face of challenges, including the COVID-19 pandemic.

Digital Innovation at the Core

At the heart of PESB’s success is its commitment to digital innovation. The introduction of internet-based trading and a user-friendly trading app has revolutionized how clients engage with the stock market, offering convenience, accessibility, and a seamless trading experience. The integration of eKYC services in 2020 further streamlined the client onboarding process, reinforcing PESB’s reputation as a trusted and compliant financial services provider.

Diverse Product and Service Offerings

PESB offers a wide range of financial services:

  • Client Broking: PESB provides a platform for real-time quotes and market news, facilitating easy execution of trades via mobile app, website, or phone.
  • Depository Participant: Through CDSL, PESB offers integrated depository services to its equity trading clients.
  • Mutual Funds: As a distributor of various mutual funds, PESB offers diversified investment opportunities.
  • Corporate Deposits: Offering fixed returns, corporate deposits through PESB present an alternative investment avenue for those seeking stable returns.
  • Currency Trading: PESB’s currency derivatives service provides unique investment opportunities for hedging, speculation, and portfolio diversification.

Geographical Footprint

With its registered office in Pune, Maharashtra, and branch offices in South Delhi and Ahmedabad, PESB’s geographical presence supports its mission to redefine how individuals and institutions engage with the financial markets.

Pune E – Stock Broking Limited stands as a testament to innovation, resilience, and client-centric operations in the dynamic landscape of Indian financial services, poised for continued growth and success.

Objects of the Pune E-Stock Broking Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. To meet working capital requirements; and ii. General Corporate Purpose.

Pune E-Stock Broking Limited IPO Details:

Open Date: Mar 07 2024
Close Date: Mar 12 2024
Total Shares: 4,606,400
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 38.23 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 78 - 83 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 15 2024

Promoters And Management:

Mr. Vrajesh Krishnakumar Shah, is one of the Promoter and Chairman & Managing Director of the Company. He has been associated with the company since Incorporation. He holds a Master of Commerce (M.Com.) degree, boasts an extensive 25-year career specializing in Risk Management within the Stock Market domain. He is a distinguished founding member renowned for his profound expertise. Mr. Shah's strategic brilliance and impeccable risk assessment skills are indispensable, providing the clientele with invaluable insights. His contributions significantly enhance the clients' financial stability and prosperity. At the heart of the holistic services, Vrajesh plays a pivotal role, striving not only to meet but surpass every facet of the clients' investment needs, ensuring their utmost satisfaction and success Ms. Archana Vinayak Gorhe, is the Whole Time Director of the company. She holds a Bachelor of Commerce (B.Com.) degree, Ms. Archana Vinayak Gorhe stands as a seasoned professional with 25 years of extensive experience in diverse roles within the capital market. She was appointed on the Board of the Company w.e.f March 30, 2018. Her unwavering dedication is directed towards delivering financial services of unparalleled quality. With expertise encompassing financial services, accounting, back-office operations, compliance, and online trading, Archana brings a comprehensive skill set to the table. Her meticulous approach ensures that the clients' financial activities are managed with utmost precision, strict adherence to compliance standards, and a keen focus on optimizing their investments in the ever-changing and complex market landscape. Under her guidance, clients can trust that their financial portfolios are handled with expertise and care, navigating the complexities of the market with confidence and assurance. Mr. Saleem Chandsaheb Yalagi is the Whole Time Director of the company. He is a qualified computer engineer, holds a prominent position leading the technical team, backed by a robust 15-year experience in the stock market domain. He was appointed on the Board of the Company w.e.f March 30, 2018. His proficiency in both technology and market trends positions the services at the forefront of innovation. Saleem's deep understanding allows them to deliver cutting-edge solutions to the clients, integrating the latest market technologies seamlessly. His unwavering dedication to staying abreast of the market's evolving digital landscape ensures that the clients not only benefit from efficient investment strategies but also capitalize on advanced opportunities, thereby enhancing their financial growth and stability in an ever-changing digital market environment.

Financials of Pune E-Stock Broking Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 3,256 4,125 3,575 2,667
Other Income 218 541 528 344
Total Revenue 3,475 4,666 4,103 3,011
Employees Benefit Expenses 266 302 328 152
Other Expenses 2,093 2,922 2,249 1,948
EBITDA 1,116 1,442 1,526 910
Depreciation & Amortisation 57 62 62 34
Finance cost 187 119 246 61
EBIT 1,059 1,380 1,465 877
OPM (%) 32.12% 30.91% 37.20% 30.24%
PBT 872 1261 1219 816
Tax 221 249 254 205
PAT 650 1012 965 611
NPM (%) 18.72% 21.69% 23.51% 20.28%
No.of Shares 156.50 156.50 156.50 156.50
EPS 4.15 6.46 6.16 3.90

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Pune E – Stock Broking Limited 36 10 6.16 13.5 83 130
Share India Securities Limited 1,088 331 101.04 16.2 1,885 6,750
ICICI Securities Limited 3,422 1,118 34.62 18.9 831 26,866
Angel One Limited 3,002 890 106.68 22.6 2,834 23,811
* All the data is as per FY23.

Recommendation on Pune E-Stock Broking Limited IPO:

Review and Recommendation of Pune E-Stock Broking Limited by team IZ is 4/10. 1. Pune E - Stock Broking Limited (PESB), established in 2007, has emerged as a key player in the financial services sector, distinguished by its innovative approaches and strategic expansions. The company has built a comprehensive platform for executing trades across various segments, including Equity, Futures & Options, Currency, and Commodity. Leveraging CTCL terminals, web interfaces, and mobile applications, PESB has successfully catered to a wide client base, including Authorized Persons (APs) and direct clients, totaling 60,640 as of March 2023. 2. Strategic Business Model PESB operates on a robust business model that revolves around collaboration with Authorized Persons (APs). These APs are instrumental in client acquisition and servicing, undertaking responsibilities such as account opening, KYC compliance, trade execution, and query resolution. PESB's revenue is primarily generated from brokerage collected on trades, from which it pays a portion as sub-brokerage to the APs. This model has enabled PESB to sustain a steady stream of revenue while ensuring efficient service delivery to its clients. 3. Diversified Service Offerings Beyond stock broking, PESB extends a range of ancillary services, enriching its portfolio and providing clients with comprehensive financial solutions. These include: a) Margin Trading Facility: PESB offers funding against collateral as per regulatory guidelines, with clear terms for such facilities. b) Depository Accounts: As a self-clearing member of CDSL, PESB offers various depository services against fixed charges and AMC. c) Fixed Deposit & Mutual Fund Distribution: PESB acts as an intermediary in fixed deposits and mutual funds, earning commission income through its ARN with various AMCs. 4. Embracing Innovation in Trading PESB also delves into proprietary and algorithm-based trading, showcasing its commitment to innovation and technological advancement in trading strategies. Although these activities constitute a minor portion of the company's total turnover, they exemplify PESB's active engagement and forward-thinking approach in the financial markets. 5. Pune E - Stock Broking Limited stands as a paradigm of resilience, innovation, and strategic prowess in the financial services domain. Its multifaceted operations, visionary leadership, and diverse service offerings have collectively propelled PESB to its current status of prominence. As the company continues to navigate the evolving financial landscape, its commitment to excellence and client service remains unwavering, promising continued growth and success in the future. 6. In the highly competitive financial services sector, they distinguish themselves through a comprehensive range of services, including Equity, Equity Derivatives, and Currency Derivatives, all available under one roof at competitive prices. Our edge lies in their depth of offerings, esteemed reputation, superior service quality, reliability, and convenience. Despite the intense competition, their holistic approach and attractive pricing enable them to carve out a unique space for their clients, offering them unparalleled financial solutions. 7. The Revenue has Increased from Rs.32 Crore in FY21 to Rs.35 Crore in FY23. 8. The EBITDA has Increased from 11 Crore in FY21 to 15 Crore in FY23. 9. The PAT has Increased from 6 Crore in FY21 to 9 Crore in FY23. 10. As per FY23, CFO/EBITDA is 0.58, As per FY24, EPS is 7.80, 11. Market Capitalization is 130 Crore & P/E is 10.6x based on FY24.

Lead Manager of Pune E-Stock Broking Limited IPO:

  1. Share India Capital Services Private Limited

Registrar of Pune E-Stock Broking Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Pune E-Stock Broking Limited 1198 Shukrawar Peth, Shubhash Nagar, Lane No 3, Pune – 411002 Phone: +91-020-41000600 Email: info@pesb.co.in Website: http://www.pesb.co.in/

Discussion on Pune E-Stock Broking Limited IPO:

Leave a Reply