The Beacon Trusteeship IPO will be a book-built issue worth INR 32.52 crores. The IPO consists of a fresh issue of 38.72 lakh shares valued at INR 23.23 crores. There will also be an offer for sale of 15.48 lakh shares valued at INR 9.29 crores. The finance raised through fresh issues will be diverted for strengthening technological infrastructure, acquisition of new premises for office, and acquisition of Beacon RTA Services Private Limited and other purposes.
About the company
Beacon Trusteeship is a company that provides various trustee services. They act as security trustees, manage trusts for alternative investment funds (AIF), oversee employee stock ownership plans (ESOP), handle securitization trusts, and offer other similar services. For the IPO, the registrar, market marker and book running leader manager are Kfin Technologies Ltd., Spread X Securities and Beeline Capital Advisors Pvt Ltd respectively.
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Price Band of the IPO
The price of the share is set in the band from INR 57 to INR 60. For the retail investors, the minimum number of shares to be purchased will be 2000, thus a minimum investment of INR 1,20,000.
For the High-Net-Worth Individuals, people who usually have a significant amount of financial assets, often above a specific limit, it is necessary to invest in at least 2 lots of 4,000 shares. Hence, the total must be of INR 2,40,000.
Important Dates related to IPO
The IPO subscription would start on May 28, 2024 and end on May 30, 2024. The allotment will be finalised by May 31, 2024. Moreover, on June 4, 2024.the company would be listed on National Stock Exchange Small And Medium Enterprises (NSE SME).
In terms of financials, an increase of 33% year on year was witnessed in the company’s revenue for the FY24. This was a rise from INR 15.72 crores to INR 20.91 crores. The Profit After Tax (PAT) rose from 3.8 crore in FY23 to INR 5.1 crore in FY24 with a rate of 34 % .
Beacon Trusteeship’s Grey Market Premium
As per the Chittorgarh IPO data, till May 27th, 2024 the recent update in Grey Market Premium (additional amount paid for IPO shares before being listed on the stock exchanges) for the company, is INR 65. If the price band of INR 60.00 is considered, the estimated listing price for Beacon Trusteeship SME IPO is INR 125 . Thus per share an expected listing gain is of around 108.33.
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Should I subscribe ?
As per a fundraising platform for startups and small and medium enterprises- CoKaCo, short-term investors can apply for listing gains. However, an ‘AVOID’ approach is recommended for the medium to long term, with further due diligence needed on portfolio revenue stability and policy risk mitigations before a potential portfolio allocation.
While the compound annual growth rate (CAGR) of the company has been 60 per cent for the last 3 years, the earnings before interest tax depreciation and amortisation (EBITDA) margins have been 34%. The Profit After Tax margins for FY24 has been 25%. The analyst at CoKaCo commented that these parameters signify the company’s expanding operations, supported by experienced management in a competitive sector.
Disclaimer
The content of this article is only for informational purposes and we do not offer any investment advice from our end. Please consult a SEBI-registered investment advisor before making any investment decision. The information does not necessarily reflect the views/opinions of the publisher.
About Author
This Article has been written by Manasi Gawaliis, an Economics graduate from St. Xavier’s College, Mumbai. She is passionate about economics and finance. She enjoys research, writing poems, music, and travel.
