IPO Details

Bidding Dates

15 Feb '24 - 19 Feb '24

Minimum Investment

₹ 134,400 / 1 Lot ( 1600 Shares )

Price Range

₹80 - ₹84

Maximum Investment

₹ 134,400 / 1 Lot ( 1600 Shares )

Retail Discount

Not Applicable

Issue Size

₹28.22 Cr.

Investor category and sub category

Retail Individual Investors  |   Non-Institutional Investors  |   Qualified Institutional Buyers (QIB)  |  

IPO Dates

Important dates with respect to IPO allotment and listing

Anchor Date

Feb 14, 2024

Opening Date

Feb 15, 2024

Closing Date

Feb 19, 2024

Basis of Allotment

Feb 20, 2024

Initiation of Refunds

Feb 21, 2024

Credit of Shares to Demat

Feb 21, 2024

Listing Date

Feb 22, 2024

Cut-off time for UPI mandate confirmation

Feb 19, 2024

About Esconet Technologies Limited

Founded in 2012, Esconet Technologies Private Limited specialises in delivering various IT solutions, including high-performance supercomputing, data centre infrastructure, storage servers, network security, virtualisation, and data protection. Its services are designed to meet the diverse needs of small and medium enterprises (SMEs), large corporations, and public sector entities. Esconet further enhances its offerings with cloud services through its fully owned subsidiary, ZeaCloud Services, providing clients with access to advanced technology and a cohesive IT infrastructure experience.

Over the years, Esconet has accumulated a significant private and public clientele, demonstrating its commitment to excellence, innovation, and comprehensive customer support. As a dependable partner, the company offers customised strategies that enable clients to excel in the fast-paced technology landscape.

To address the specific demands of the Indian market, Esconet launched HexaData, a brand focused on high-performance servers, workstations, and storage systems. The company's strategic partnership with NVIDIA has propelled its advancements in the fields of Artificial Intelligence (AI) and Machine Learning (ML), enriching its server and workstation offerings.

In 2022, aiming to broaden its service spectrum, Esconet's promoters founded ZeaCloud Services Private Limited. Following a Share Swap agreement in 2023, ZeaCloud became a wholly owned subsidiary of Esconet. ZeaCloud Services offers an extensive array of cloud-based solutions under the Availablous brand, catering to varied business requirements including disaster recovery, managed cloud services, private cloud, and DaaS services.

Industry Outlook

  1. The worldwide market for supercomputers is anticipated to witness a significant growth rate of 10.5% CAGR, with projections indicating that its value will escalate to $19 billion by 2033 from a base of $7 billion in 2023.
  2. The market for Cloud System Management, as reported by Esconet Technologies Limited, was estimated at $2.1 billion in 2022. This sector is anticipated to expand from $2.34 billion in 2023 to $5.59 billion by 2032. From 2023 to 2032, it is expected to achieve a Compound Annual Growth Rate (CAGR) of 11.50%.
  3. The rise in global demand for cloud computing at Esconet Technologies Limited is attributed to the advancement of emerging technologies such as big data, artificial intelligence (AI), and machine learning (ML). Additionally, a heightened emphasis on developing applications centred around the consumer to enhance customer satisfaction is influencing the adoption of these emerging technologies.

Esconet Technologies Limited IPO Details

Esconet Technologies Limited IPO Dates

The IPO of Esconet Technologies Limited is open for subscription from February 16, 2024, to February 20, 2024.

Esconet Technologies Limited IPO's Price Band

Esconet Technologies Limited’s IPO is a fresh issue IPO of up to ₹28.22 crore. It is a book-building issue. The price range is set to ₹80 to ₹84 per share.

Esconet Technologies Limited IPO's Lot Size

The lot size for Esconet Technologies Limited’s IPO is 1,600 shares with a minimum investment of ₹1,34,400.

Esconet Technologies Limited IPO's Objectives

The proceeds from the Net Fresh Issue will be allocated towards several key objectives for Esconet Technologies Limited, which will be referred to in the third person. These objectives include:

  1. Meeting the working capital needs of Esconet Technologies Limited, ensuring the company has the necessary funds for its day-to-day operations.
  2. Allocating funds for investment in its wholly-owned subsidiary, Zeacloud Services Private Limited, specifically to support its capital expenditure requirements.
  3. Covering various General Corporate Expenses to facilitate the company's overall growth and operational efficiency.

Peer Details

As per DRHP, the listed peers whose business portfolio is comparable to the company are as follows:

  • E2E Networks Limited
  • Netweb Technologies India Limited

How To Check the Allotment Status of Esconet Technologies Limited’s IPO?

Steps to check IPO allotment status on Angel One’s app:

  • Log in to the Angel One app.
  • Go to the IPO Section and then to IPO Orders.
  • Select the individual IPO that you had applied for and check the allotment status.
  • As such, Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Esconet Technologies Limited

Registered office: D-147 Okhla Industrial Area Phase 1, South Delhi, New Delhi – 110020

Contact Person: Mr. Rajnish Pandey (Company Secretary and Compliance Officer)

Phone: +91 9311881642

E-mail: cs@esc.co.in

IPO Financials

Particulars For the period Ended on September 30, 2023 Year ending on March 31, 2023 Year ending on March 31, 2022 Year ending on March 31, 2021
Revenue from Operations 7,141.59 9,465.95 6,856.28 4,411.89
EBITDA Margin (%) 7.34% 6.73% 2.95% 0.26%
Profit After Tax (PAT) 304.48 304.02 72.36 -100.48
PAT Margin (%) 4.28% 3.21% 1.06% -2.28%
Cash & Cash Equivalents 42.08 50.83 30.97 35.14
Debt to Equity Ratio(x) 1.12 1.99 3.09 3.56
Return on Equity (%) 42.06% 75.54% 33.77% -56.42%
Return on Capital Employed (RoCE) (%) 42.37% 59.11% 20.76% -8.33%
Earning Per Share (EPS) in absolute ₹ 45.24* 39.63 9.43 -13.10

Know before investing

Strengths

3

  1. Esconet was founded by Santosh and Sunil Agrawal in 2003, showcasing over 20 years of IT industry expertise, leading to multiple awards.

  2. Esconet collaborates with industry giants like NVIDIA and CISCO, enhancing server solutions through innovative, integrated hardware and software technologies.

  3. Esconet maintains strong, enduring client relationships, ensuring repeat business and cross-selling opportunities through exceptional product and service quality.

Risks

4

  1. As of September 30, 2023, Esconet Technologies Limited has pledged commitments amounting to ₹260.53 lakh towards projects commissioned by its clients. The company acknowledges the potential risk of defaults in fulfilling these commitments in the future.

  2. Esconet Technologies Limited's movable assets and book debts have been secured as collateral against financing obtained from lenders. Security has been provided for cash credit facilities and bank guarantees totalling ₹1,250 lakh. This was achieved by placing a lien on the company's current and future equipment and machinery, inventory, receivables, book debts, and fixed deposits.

  3. The revenue generation of Esconet Technologies Limited is significantly concentrated, with its top five clients accounting for 41.35%, 37.93%, and 32.91% of its operational revenue for the fiscal years ending March 31, 2023, March 31, 2022, and March 31, 2021, respectively. Losing one or more of these key clients could substantially impact the company's revenue streams and profitability.

  4. Over the past three fiscal years, a considerable share of Esconet Technologies Limited's operational income has been sourced from government projects. A reduction in business from this sector may harm the company's financial health and operational success.

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Esconet Technologies Limited IPO FAQs

What is Esconet Technologies Limited's IPO?

Esconet Technologies Limited IPO is a fresh issue of up to ₹28.22 crore. It is a book-built issue.

When will Esconet Technologies Limited's IPO be allotted?

Esconet Technologies Limited’s shares will be allotted on February 22, 2024.

When will Esconet Technologies Limited's IPO open for subscription?

The IPO subscription window for Esconet Technologies Limited will open on February 16, 2024.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for at least one lot, which is a size of 1,600 shares, with a sum of ₹1,34,400.

When will Esconet Technologies Limited list on exchanges?

Esconet Technologies Limited will be listed on NSE Emerge. The stock will be listed on February 23, 2024.

How do I check the allotment status of Esconet Technologies Limited?

Steps to check IPO allotment status on Angel One’s app:

  • Log in to the Angel One app
  • Go to the IPO Section and then to IPO Orders
  • Select the individual IPO that you had applied for and check the allotment status.
  • As such, Angel One will notify you of your IPO allotment status via push notification and email.

What would be the listing gains on Esconet Technologies Limited's IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

I have finished the application process for Esconet Technologies Limited, but the funds still need to be debited. What is the reason?

Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.

How do I approve the UPI mandate request for Esconet Technologies Limited's IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Esconet Technologies Limited using one PAN?

You can submit only one application using your PAN card.