Review By on March 25, 2017
Escorp Asset Management Ltd (EAML) is a subsidiary of Aryaman Financial group that is engaged in financial service sector. EAML is a asset management arm of the group that has also applied to SEBI for registration as Portfolio Manager that is under process. It proposes to utilize the group’s growing network and intellect and cross sell our products / services as well as add new clients and client groups in the ambit of the group. In line with the group’s current strength; EAML aims to position itself within the investment community as an alternative asset management company with unique focus on SME sector and its growth opportunities. Further the company proposes to provide professional global standard services in fields of financial planning and tax advisory; which according to EAML are being serviced currently in India in a highly unorganized manner.
To part finance its repayment of loan plans and general corpus fund needs, the company is coming out with a maiden IPO of 2160000 equity share of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 3.24 crore. Issue opens for subscription on 31.03.17 and will close on 06.04.17. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by BCB Brokerage Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. From incorporation till May 2016 it issued equity at par. In August 2016 it raised further equity at a price of Rs. 15 per share. Post issue, its current paid up equity capital of Rs. 4.51 crore will stand enhanced to Rs. 6.67 crore.
On performance front, for last two fiscals the company has posted total revenue/net profits of Rs. 0.05 lakh / Rs. 0.01 lakh (FY15) and Rs. 0.26 lakh / Rs. 0.16 lakh (FY16). For the first half of the current fiscal it has earned net profit of Rs. 2.99 lakh on total revenue of Rs. 9.74 lakh. If we annualize latest earnings and attribute it to fully diluted equity post issue, then asking price is at a P/E of 166 plus against industry composite of 24 and at a P/BV of around 1.2 plus making it a costly bet.
On merchant banker’s front, this is the 4th mandate from its stable in last three fiscals and earlier issued have shown mixed trends.
Conclusion: Considering group’s weak image and the average workings so far, one may give it a miss.
Review By on March 25, 2017
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Escorp Asset Management Ltd. offers an early investment opportunity in Escorp Asset Management Ltd.. A stock market investor can buy Escorp Asset Management IPO shares by applying in IPO before Escorp Asset Management Ltd. shares get listed at the stock exchanges. An investor could invest in Escorp Asset Management IPO for short term listing gain or a long term.
Read the Escorp Asset Management IPO recommendations by the leading analyst and leading stock brokers.
Escorp Asset Management IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Escorp Asset Management IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Escorp Asset Management IPO?"
Our recommendation for Escorp Asset Management IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Escorp Asset Management IPO.
The Escorp Asset Management IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Escorp Asset Management IPO allotment status to check.
