Pune E-Stock Broking makes stellar debut on BSE, lists at 56% premium to IPO price

In a stellar debut trade on BSE, Pune E-Stock Broking Ltd shares listed at a premium of 56% to the issue price on Friday, March 15.

Shares of the stock broking services provider listed at ₹130 per share on the SME platform of BSE against the issue price of ₹83 per share. The stock gained further to hit a high of ₹136.5 in early deals.

According to exchange data, around 17.31 lakh shares were traded in the first 20 minutes of the session. Traded value stood at ₹21.40 crore while the market capitalisation of the company stood at ₹90 crore.

Pune E-Stock Broking Ltd hit the capital market on March 7 to raise around ₹38.22 crore from public investors. The public offer, which comprised a fresh issue of 46,06,600 equity shares, was priced at ₹78 to ₹83 per share. The public offer closed on March 12 with a total subscription of 371 times.

The company reserved 50% of the shares in the issue for qualified institutional buyers, not less than 15% for NIIs and not less than 35% for retail investors. Up to 6,91,200 equity shares or 15% of the issue was reserved for market makers. The lot size was 1,600 shares and the minimum investment was ₹1,24,800.

The company finalised the share allotment on March 13 which can be checked on the websites of the IPO registrar and BSE.

The company has proposed to utilise the IPO proceeds to meet its working capital requirement and other general corporate purposes. It has proposed to invest ₹35 crore in the launch of new products and increase its marginal trading facility size.

Pune E-Stock Broking is looking to position itself in a segment that has already been explored by leading brokers and investors.

The company also wants to explore new business as it is going to offer new products like PMS, Investment Advisory, IFSC Gift City Broking & Insurance Broking.

Pune E-Stock Brokerage Ltd is involved in corporate brokerage business. The company offers platforms to clients for trading in Equity, Futures & Options, Currency, and Commodity on BSE, NSE and MCX. It facilitates trading through CTCL (Computer to Computer Link) Terminals, Web Interface & Mobile App (Android & iOS).

Pune E-Stock Brokerage (PESB) offers margin trading facility against collateral (stock/cash) as per the regulatory guidelines. The company charges interest on the funded portion on a monthly basis.