About the Company:
East India Securities is currently engaged in the business of Broking (Equity and Equity Derivatives and Currency Derivatives). They are one of the largest Clearing Member for Equity Derivatives in NSE, and Currency Derivatives in NSE/MCX/USE in Eastern India.
They 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.
Company is 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 2006.
They 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.
They have also have the distinction of executing the first Currency Future contracts and Currency Options contract on NSE at launch.
Company also has the membership of NSDL since 1997, and CDSL since 2000. They 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 81 active CM Pool Accounts, and over 1097 active corporate clients, They handle over 1,000 instructions per day.Company has received permanent registration from SEBI as Participant of the NSDL and CDSL depositories in the year 2015.
To expand the business operations, and with a particular focus on trading and broking for Institutional and High Networth clients,Company’s branch office in Mumbai has a dedicated Institutional Equities desk with Research, Dealing and Sales teams in place, each headed by professionals.
East India Securities is one of the largest market maker for ETFs in India and formally recognized by the NSE. Company’s robust technology platform enables them to provide efficient market making for various securities.Company is able to provide/absorb large ETF flows of up to 25 Crores.
They work closely with Mutual Funds like Reliance, UTI, HDFC, ICICI 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.
Company is also engaged in the business of Mutual Fund Advisor/Distributor and are a member of AMFI. Company is engaged in making proprietary investments in various tradable securities.
They are currently located in Kolkata and Mumbai. Going forward,they plan to establish their presence in the western and central region and intend to set up branch offices in major cities.
Company’s Trading Volume (Ending 31st March 2017):
Management Team:
- Mr. Vivek Agarwal (Designation: Chairman and Non- executive Director)
- Mr. Sanjay Kumar Shroff (Designation: Managing Director)
- Mr. Tapas Kumar Maity (Designation: Whole Time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Lakshmendra Kr. Agarwal | 15,66,900 | 10.27 |
| Mr. Vivek Agarwal | 14,72,100 | 10.00 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake (%) |
|---|---|---|
| Promoters | ||
| Vivek Agarwal | 40.14% | 26.40% |
| Lakshmendra Kumar Agarwal | 42.73% | 28.99% |
| Promoter Group Entities | 17.13% | 17.13% |
| Total | 100% | 72.52% |
Certifications & Recognitions Received by the Company in the Recent Past:
- Our company has been accredited with the certificate for being among the top performing members for the year 2015-16 in Equity ETF by National Stock Exchange of India Limited.
- Our company has been accredited with the certificate for being among the top performing members for the year 2015-16 in Equity Derivatives by National Stock Exchange of India Limited.
Objectives of the Issue:
Offer for Sale: (Around Rs.92.74 crores)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 36.01 | 37.13 | 40.12 | 33.48 | 44.50 | 41.08 |
| Net Profit | 11.98 | 15.87 | 14.97 | 15.85 | 27.73 | 28.26 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| East India Securities Ltd | 10 | 75.64 | 12.16 | 10.62% | 712.06 |
| Geojit Financial Services Ltd | 1 | 1.9 | 49.5 | 11.8% | 16.6 |
| Abhinav Capital | 10 | 1.1 | 4.6 | 15.9% | 31.5 |
| Aditya Birla Money Ltd | 10 | 1.1 | 53.2 | —- | 6.0 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 5th March 2018 |
| Issue Closes on:. | 7th March 2018 |
| Issue Price | Rs.920 |
| Face Value | Rs.10 |
| Minimum Lot | 160 |
| Minimum Investment | Rs.1,47,000 |
| Issue Constitutes | 27.49% |
| Issue Size | Rs.92.74 cr |
| Market Cap | Rs.337.36 cr |
| Listing at | BSE SME |
| Total Equity Shares Offered (OFS) | 10,08,000 |
| Equity Shares Prior to the issue | 36,67,000 |
| Equity Shares after the issue | 36,67,000 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| HNI | 4,78,720 | 0.37 | 2.71 | 3.28 |
| Retail | 4,78,720 | 0.006 | 0.03 | 0.19 |
| Others | 50,400 | 0.00 | 0.00 | 0.05 |
| Employee | ——- | —— | —– | —– |
| TOTAL | 10,08,000 | 0.18 | 1.30 | 1.65 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 75.64 | 12.16 | 10.62% | 712.06 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 15% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 03/03/18 | East India Securities Ltd | 920 | 43 – 45 |
| Company Contact Info: |
|---|
| East India Securities Limited 10/1D Lal Bazar Street, Mercantile Building, Kolkata- 700001, West Bengal, India. Telephone: +91 (033) 40205929 Facsimile: +91 (033) 23586631 CIN: U67120WB1995PLC072026 Email id: sme.ipo@eisec.com Website: http://www.eisec.com |
| IPO Registrar Info: |
|---|
| Cameo Corporate Services Limited “Subramanian Building”, #1, Club House Road, Chennai 600 002 Telephone: +91-44-40020700, 28460390 Facsimile: +91-44-28460129 Email: investor@cameoindia.com Website: www.cameoindia.com |
| Lead Manager to the Issue: |
|---|
| Finshore Management Services Limited Anandlok, Block-A, 2nd Floor, Room No. 207, 227 A.J.C. Bose Road, Kolkata-700020, India Telephone: +91-33-22895101 Email: ramakrishna@finshoregroup.com Grievance email: info@finshoregroup.com Contact Person: S. Ramakrishna Iyengar Website: www.finshoregroup.com |
