East India Securities Ltd is incorporated in 1999. This company is one of the largest Clearing Member for Equity Derivatives in NSE, and Currency Derivatives in NSE/MCX/USE in Eastern India. East India Securities Ltd is engaged in making proprietary investments in various tradable securities. EISL has their BSE SME issue open since yesterday. Hence, let me quickly go through the draft red herring prospectus and check the issue price to post the East India Securities Ltd IPO Review for you.
About East India Securities Ltd IPO :
- IPO Opens on – March 5, 2018.
- IPO Closes on – March 7, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 920 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Retail Allocation – 50%
- Market Lot – 160 Shares.
- Minimum Order Quantity – 160 Shares.
- Issue Size – 1,008,000 Equity Shares of Rs 10 aggregating up to Rs 92.74 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Enhance the visibility and brand and provide liquidity to its existing shareholders.
- General corporate purposes.
About The Company –
- East India Securities Ltd is engaged in the business of Broking (Equity and Equity Derivatives and Currency Derivatives).
- This company provide services as a Depository Participant (NSDL/CDSL), Distributor (Mutual Funds, Primary Issuer of Equity and Fixed Income Securities), and play an Advisory role in Corporate Financing and Risk Management.
- East India Securities Ltd is also engaged in the business of Mutual Fund Advisor/Distributor and are a member of AMFI.
- This company is one of the most trusted service providers in the Indian Financial Services industry.
- East India Securities Ltd’s clients include Public/Private Banks, Insurance companies, Domestic Mutual Funds, AIFs and FPIs.
- This company also has the membership of NSDL.
- East India Securities Ltd is an integrated financial services company with presence in all segments of financial services space in India.
Promoters of the company :
- Mr. Vivek Agarwal, is the Promoter and Non-Executive Director of this company.
- Mr. Lakshmendra Kumar Agarwal, is the Promoter of this company.
East India Securities Ltd IPO Review: This issue is the biggest ever new issue in the SME exchanges. The company has also shown steady financial performance over the years. At the issue price of Rs. 920, it has an earnings per share of more than 75 and a price to earnings ratio of more than 12. However the issue price of Rs. 920 is aggressive considering an SME issue. Hence our East India Securities Ltd IPO Review has a NEUTRAL view on this issue. Only cash-rich and risk-taking investors can apply in East India Securities IPO and hold for medium to long-term.