Beacon Trusteeship makes strong debut, shares list at 50% premium to IPO price

Shares of small and medium enterprise (SME) Beacon Trusteeship Ltd made a spectacular trading debut on Tuesday, May 4, listing at a 50% premium on the NSE Emerge platform.

The Beacon Trusteeship stock opened the session at ₹90 apiece compared to its initial public offering (IPO) price of ₹60 per share. Soon after listing, the share price rallied further to hit the 5% upper circuit at ₹94.5 levels.

As the lot size for the Beacon Trusteeship IPO was 2,000 shares, successful bidders who were allotted shares in the public issue were sitting on a profit of ₹60,000 (₹30x2,000) as soon as trading began in the stock.

The solid listing didn’t come as a surprise as the ₹32.5-crore Beacon Trusteeship IPO, which was open for subscription from May 28 to May 30, was oversubscribed by an overwhelming 465 times at the end of the three-day bidding period.

The company had received bids for 167.75 crore shares against just 36.06 lakh shares on offer.

The non-institutional investors’ category had seen the highest demand, with an oversubscription of over 779 times. The quota reserved for retail investors was booked 502.5 times, while the qualified institutional buyers’ portion (QIB) was subscribed 163.86 times.

The Beacon Trusteeship IPO was a 100% book-built issue that aimed to raise ₹32.52 crore. The offer was a combination of fresh issue of 38.72 lakh shares worth ₹23.23 crore and offer-for-sale (OFS) of 15.48 lakh shares aggregating to ₹9.29 crore.

Ahead of the launch of the IPO, Beacon Trusteeship had also raised ₹9.25 crore from anchor investors. The board of directors at its meeting held on May 27 finalised the allocation of 15.42 lakh shares to a total of nine anchor investors at a price of ₹60 apiece. The list of anchor investors included names like North Star Opportunities Fund VCC, NAV Capital VCC, AG Dynamic Fund Ltd, Beacon Stone Capital VCC, among others.

Beacon Trusteeship had earlier announced that it would use the net proceeds from the issue to achieve key objectives including expanding the company’s technological infrastructure, buying new office space and addressing general corporate purposes.

The company will also invest a portion of the funds in wholly-owned subsidiary Beacon Investor Holdings Pvt. Ltd to support the launch of new services as a depository participant and as a registrar and share transfer agent.

Beeline Capital Advisors Pvt. Ltd was the book-running lead manager of the Beacon Trusteeship IPO, while Kfin Technologies Ltd was the registrar for the issue. The market maker for Beacon Trusteeship IPO was Spread X Securities.

Established in 2015, Beacon Trusteeship is a Sebi-registered debenture trustee. Besides debenture trustee services, it provides a range of services like security trustee services, trustee to alternate investment fund (AIF), trustee to ESOP, securitisation trustee, bond trusteeship services, escrow services, safekeeping, among others.