Upcoming IPO: Esconet Technologies' Public Offer To Open On February 16, What GMP Hints?

IT company Esconet Technologies on Wednesday revealed plans to launch its Initial Public Offering (IPO) with a price band set at Rs 81-84 per share.The IPO, valued at Rs 28.22 crore, is scheduled to open for subscription on February 16, 2024, and close on February 20, 2024.

IPO Details

The allotment process is expected to be finalized by February 21, 2024, with the IPO listing on the NSE SME platform tentatively set for Friday, February 23, 2024.

The Esconet Technologies IPO represents a book-built issue of Rs 28.22 crore, consisting entirely of fresh issue 33.6 lakh shares.

The company has allocated 9.53 lakh equity shares for anchor investors, 1.76 lakh for market makers, 4.78 lakh for high-net-worth individuals, 6.36 lakh for qualified institutional buyers, and 11.15 lakh for retail investors.

Esconet Technologies posted a net profit of Rs 3.04 crore for the financial year March 2023 and revenue of Rs 96.90 crore. In the September quarter of FY23, the company reported a PAT of Rs 3.05 crore, and revenue stood at Rs 71.46 crore.

Esconet Technologies IPO GMP

Market observers report that the Grey Market Premium (GMP) for Esconet Technologies' IPO today is Rs 31 per share, reflecting a 36.90% premium over the issue price of Rs 115 per share.

MD Santosh Agarwal of Esconet Technologies, said, "The purpose of the IPO is to raise capital for cloud services, which will enhance the capacity of the company and improve profitability." Esconet Technologies, provides services to prominent brands such as Amazon Web Services, Cisco, Dell Technologies, HP Enterprises, Intel, Microsoft, and NVIDIA, among others.

"We provide a blend of technologies to maintain our high-quality services and deliver industry-standard solutions through our proprietary products and cloud service."said in statement.

Corporate Capital Ventures Pvt Ltd has been appointed as the bookrunner and lead manager for the Esconet Technologies IPO, with Skyline Financial Services Private Ltd serving as the registrar for the issue. Ss Corporate Securities will act as the market maker for the IPO, facilitating seamless trading post-listing.

The company boasts an impressive roster of technology partners, including AMD, Amazon Web Services, Cisco, Dell Technologies, HP Enterprises, Intel, Microsoft, Nutanix, and NVIDIA, among others. Esconet Technologies is dedicated to providing cutting-edge supercomputing solutions, data center facilities, storage servers, network security, virtualization, and data protection services.

Esconet Technologies Ltd was incorporated in the year 2012 to provide high-end supercomputing solutions, and data centre facilities on an outsourced basis and based in Okhla New Delhi.