Pune E-Stock Broking shares list at 57% premium over IPO price

The IPO received overwhelming response from investors with an overall subscription of over 300 times at close.

The issue is entirely a fresh equity issue of 46 lakh shares and through the offer, the company aims to raise Rs 38 crore.

Net proceeds from the public offer will be used to meet working capital requirements, general corporate purposes, and public issue expenses.

The company primarily offers a platform to its clients for execution of trades (equity, futures & options, currency, and commodity). Its client base includes authorised persons as well as direct clients. The total client stood at 60,640 as of March 2023.

Also Read:

Along with stock broking services, the company also offers ancillary services like margin trading facility, depository accounts, fixed deposit and mutual fund distribution.

The company is also engaged in proprietary trading which is currently 0.1% of total turnover of the company and Algorithm based trading, whereby the company needs to have margin from the exchanges in the F&O segment which requires the company to place its fund as collateral in the form of fixed deposits with the exchanges. Banks provide double exposure against such fixed deposits created with the Banks.

Within India's financial sector, the equity market stands out prominently for its advanced and globally aligned status. Over time, the Indian stock market has witnessed rapid growth, attaining a significant presence globally in terms of market capitalization, turnover, and the count of listed companies.

For the period ended September 2023, the company clocked revenues of Rs 25.75 crore and net profit of Rs 5.52 crore.

Share India Capital acted as the lead manager to the issue and Bigshare Services was the registrar.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)