Esconet Tech Ipo To Open On Feb 16; Price Band Fixed At Rs 80-84 Per Share

Esconet Technologies announces its IPO opening on Feb 16 with a price band of Rs 80-84 per share, aiming to raise Rs 28.22 crore. Funds will enhance working capital and invest in ZeaCloud Services.

IT system integrator firm Esconet Technologies on Wednesday fixed the price band at Rs 80-84 apiece for its Rs 28.22 crore initial public offering which will open for subscription on February 16.

Esconet proposes to utilise Rs 16 crore of the IPO proceeds towards funding its long-term working capital requirements, besides investing Rs 2.5 crore in its wholly-owned subsidiary, ZeaCloud Services Private Limited to acquire additional hardware and software.

The issue will comprise a fresh issue of 33,60,000 equity shares with a face value of Rs 10 through the book-building route.

The company has reserved 9.53 lakh equity shares for the anchor portion, 1.76 lakh equity shares for market makers, 4.78 lakh equity shares allocated for high net-worth individuals, 6.36 lakh equity shares for qualified institutional buyers, and Retail portion accounts for 11.15 lakh equity shares.

The anchor portion will be opened on February 15, and the issue will conclude on February 20. The company intends to raise approximately Rs 28.22 crore at the upper band from the offering and plans to be listed with NSE Emerge.

Esconet's revenue from operations stood at Rs 71.41 crore and earned a Profit After Tax (PAT) of Rs 3.05 crore during the first half of the current fiscal year, which ended September 30, 2023, compared to an operating revenue of Rs 96.59 crore and a profit of Rs 3.18 crore in FY 2022-23.

"We have fixed cost of operations. Our margins will increase when we scale up our business," Esconet Technologies, Director Santosh Agrawal told reporters.

The company makes high-performance supercomputers, data servers, workstations, etc. It has AMD, Amazon Web Services, Cisco, Dell Technologies, HP Enterprises, Intel, Microsoft, Nutanix, NVIDIA, etc among its technology partners.

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