Pune E-Stock Broking (BSE SME)

Mar 7, 2024 - Mar 12, 2024

---

 

ANCHOR INVESTOR DETAILS
Name of Anchor	No. of Shares	% Portion	Amount (cr)
Rajasthan Global Securities  Pvt Ltd	688000	58.66%	5.7
LRSD Securities Pvt. Ltd	241600	20.60%	2.0
Persistent Growth Fund Varsu India Growth Story Scheme - 1	121600	10.37%	1.0
India Equity Fund	121600	10.37%	1.0
Total	1172800	100.00%	9.73

Pune E-Stock Broking IPO Reservation

Investor Category	Shares Offered	No. of Shares
Retail	29.74%	1371200
NII (HNI)	12.77%	588800
QIB	16.96%	782400
Anchor	25.42%	1172800
Market Maker	15.00%	691200
Total	100%	4606400

Pune E-Stock Broking Limited (PESB), incorporated in 2007, operates as a corporate broking house, providing a range of financial services to its clients.

Here are the key offerings and operational details of PESB:

·  Client Broking Services: PESB enables users to invest or trade in shares through its platform, offering real-time quotes, easy execution via mobile app, website, or call, and access to the latest market news and updates. The company also provides support staff to assist clients with their investment decisions.

·  Depository Facility: PESB offers a depository facility to equity trading clients as part of its integrated service offering through the Central Depository Services Limited (CDSL). The company has a substantial client base of 23,155 active clients utilizing its depository services.

·  Mutual Funds: PESB provides various mutual fund investment options, including equity, debt, and hybrid funds, allowing clients to diversify their investment portfolios and achieve their financial goals.

·  Corporate Deposits: Investors have the option to make corporate deposits directly through PESB's website or utilize online investment platforms or brokers to facilitate their investments, providing them with convenient and secure investment avenues.

·  Currency Trading Services: PESB offers foreign exchange trading services through multiple trading channels, allowing clients to engage in hedging, speculation, and portfolio diversification activities in the currency markets.

PESB delivers its services through its web-based trading platform Aero and its mobile trading app, providing users with the flexibility to manage their investments, stay informed about market trends, and execute trades conveniently on the go.

In FY 2023, PESB employed a total of 79 employees, including directors, key managerial personnel (KMP), administrative and managerial staff, and unskilled workers, to support its operations and serve its clients effectively in the dynamic financial services industry.

 

KPI	Mar-23	Mar-22	Mar-21
ROE	12.72%	15.35%	11.29%
ROCE	14.77%	15.79%	14.54%
RONW	12.60%	14.98%	11.20%
EPS (basic & diluted)	8.16	8.35	5.69
P/BV	0.77	-	-
P/E	9.5	-	-

Company Financials

Period	2023	2022	2021
Assets	15,801.00	16,314.24	13,288.68
Revenue	4,103.10	4,665.70	3,474.64
Profit	964.52	1,012.03	650.48
Net Worth	7,654.66	6,754.55	5,806.65
Reserve & Surplus	6,918.36	6,018.26	5,070.35
Borrowing	1,853.74	1,640.17	1,195.00
Amount in lakhs.

Strength Factor

Experienced Promoters and Management Team: PESB benefits from having an experienced team of promoters and management professionals who bring a wealth of knowledge and expertise to the company. Their seasoned leadership can guide the company through various challenges and opportunities in the financial services industry.

Diversified yet Integrated Mix of Business: PESB offers a diverse range of financial services, including client broking, depository facilities, mutual funds, corporate deposits, and currency trading services. This diversified portfolio allows PESB to cater to a wide range of client needs while maintaining an integrated approach to its business operations.

Long-term Relationships with Clients: PESB has cultivated long-term relationships with its clients, as evidenced by its substantial client base of 23,155 active clients in its depository. These enduring relationships are a testament to PESB's commitment to delivering quality services and meeting the evolving needs of its clients over time.

Strong Risk Management System: PESB prioritizes risk management, ensuring the safety and security of its clients' investments. By implementing robust risk management practices and systems, PESB can effectively identify, assess, and mitigate risks, safeguarding its clients' interests and enhancing overall trust and confidence in the company.

 

Risk Factor

Litigation Risks: PESB, its directors, promoters, subsidiaries, and group companies are involved in ongoing litigation at various stages. Any adverse decisions in these cases could have significant implications for the company's business operations. Legal proceedings may result in financial losses, reputational damage, and disruptions to business activities, impacting stakeholders and investor confidence.

Negative Cash Flows: PESB has experienced negative cash flows in the past and may encounter similar challenges in the future. Negative cash flows can strain the company's liquidity position, hamper its ability to meet financial obligations, and restrict its capacity for growth and expansion. This may necessitate cost-cutting measures, asset sales, or additional financing, which could dilute shareholder value or increase debt levels.

Regulatory Actions: PESB has faced penal actions from stock exchanges and regulatory authorities like the Securities and Exchange Board of India (SEBI) in the past. Such regulatory actions can lead to fines, sanctions, or other punitive measures that may adversely affect the company's financial condition, operations, and profitability. Continued non-compliance with regulatory requirements could result in further penalties, reputational harm, and legal liabilities.

Suspension of Certificate of Registration: The suspension of the certificate of registration of PESB's group company, Pune E Commodities Broking Private Ltd., by SEBI raises concerns about regulatory compliance and governance practices within the group. This event may indicate broader systemic risks, including potential regulatory violations, operational deficiencies, or inadequate risk management practices across the organization, which could impact PESB's reputation and financial performance.

Pune E-Stock Broking IPO Lead Manager(s)

• Share India Capital Services Private Limited

Bigshare Services Pvt Ltd

Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/ipo_status.html