Esconet Technologies IPO: All you need to know about the public offer

The initial public offer (IPO) of Esconet Technologies opened for subscription and will close on February 20. The company aims to raise Rs 28 crore through the SME IPO and list the shares on NSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.

1) About Esconet Technologies

Esconet Technologies, founded in 2012, is engaged in the business of meeting a wide range of IT requirements such as high-performance supercomputing solutions, data centre facilities, encompassing storage servers, network security, virtualization, and data protection.

2) Industry overview

The growing use of supercomputers in the research and development of drugs and increased biotechnology adoption is likely to fuel the market growth during the forecast period. The global supercomputer market is projected to increase at an impressive CAGR of 10.5% and hit a valuation of $19 billion by the end of 2033, up from $7 billion in 2023.

3) Esconet Technologies IPO size

The IPO is an entirely fresh equity issue of 33.6 lakh shares and through the issue, the company aims to raise Rs 28 crore.

4) Esconet Technologies IPO price band

The company is offering its shares at Rs 80-84 apiece, and investors can bid for 1,600 shares in 1 lot.

5) Esconet Technologies financial performance

For the period ended September 2023, the company clocked revenues of Rs 71.4 crore and net profit of Rs 3.05 crore.

6) Objects of the offer

The net proceeds from the public offer will be used for working capital requirements, investment in wholly owned subsidiaries, and other general corporate purposes.

7) Lead managers and Registrar

Corporate Capital Ventures is acting as the lead manager to the issue and Skyline Financial Services is the registrar.

8) Issue structure

About 50% of the offer is reserved for qualified institutional buyers, 35% for retail invest ..

9) Important dates

The IPO opens on February 16 and will close on February 20. The final allotment will likely be made on February 21. The company's shares will likely get listed on February 23.

10) Esconet Technologies GMP

In the unlisted market, the company's shares are trading with a GMP of Rs 40 in the unlisted market.