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Escorp Asset Management BSE SME IPO review (Avoid)

Review By Dilip Davda on Mar 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.


Conclusion / Investment Strategy

Considering group’s weak image and the average workings so far, one may give it a miss.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Mar 25, 2017

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well informed investors to participate is such offers. With crazy recent listings, SME IPOs have started drawing attention of investors across the board. However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on information available as on date coupled with market perceptions. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Escorp Asset Management IPO FAQs

  1. 1. Why Escorp Asset Management IPO?

    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.

  2. 2. How is Escorp Asset Management IPO?

    Read the Escorp Asset Management IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Escorp Asset Management IPO what should investors do?

    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 in the above answer.

  4. 4. Is Escorp Asset Management IPO good?

    Our recommendation for Escorp Asset Management IPO is to avoid.

  5. 5. Is Escorp Asset Management IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Escorp Asset Management IPO.

  6. 6. When will Escorp Asset Management IPO allotment status?

    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.

  7. 7. When will Escorp Asset Management IPO list?

    The Escorp Asset Management IPO will list on Monday, April 17, 2017, at BSE SME.

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