Enser Communications IPO opens for subscription; 10 key things to know about the issue

Enser Communications IPO saw a tepid response from buyers as the issue was subscribed 0.32 per cent by 12:35 pm on Friday, March 15. The issue opened for subscription on March 15 and will close on March 19.

Here are 10 key points to know about the SME IPO

1. Enser Communications IPO details: Enser Communications IPO is a fixed price issue totalling ₹16.17 crore, consisting solely of 23.1 lakh fresh shares of face value of ₹10 each.
2. Enser Communications IPO price band: The Enser Communications IPO is priced at ₹70 per share, with a minimum lot size requirement of 2000 shares for an application. 
   
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3. Enser Communications IPO investment requirement: For retail investors, the minimum amount required for investments is ₹1,40,000. High net worth individuals (HNIs) are required to invest in a minimum of 2 lots, totalling 4000 shares, amounting to ₹2,80,000.
4. Lead manager and registrar of the issue: Fast Track Finsec Private Ltd is the book-running lead manager for the issue while Skyline Financial Services Private Ltd is the registrar for the Enser Communications IPO. B.N. Rathi Securities Limited is the market maker for the issue, as per the RHP of the company.
   
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5. Reservation for market maker: 1,18,000 shares at a price of ₹70, aggregating ₹82.60 lakh is reserved for the market maker in this issue. This means this is a net issue of 21,92,000 shares of ₹10 each of the issuer at ₹70, aggregating to ₹15.34 crore.
6. Use of proceeds: The company intends to utilise the net proceeds of the IPO for the setting up of a new service unit, meeting working capital requirements, general corporate purposes and issue-related expenses.
   
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7. Promoters: Harihara Subramanian Iyer, Rajnish Omprakash Sarna, Gayatri Rajnish Sarna and Sindhu Saseedharan Nair are the promoters while Yash Rajnish Sarna is the promoter group of the company.
8. Promoters stake after the issue: After the issue, Harihara Subramanian Iyer's stake in the company will decrease from 33.81 per cent to 24.85 per cent, while Rajnish Omprakash Sarna's stake will reduce from 56.29 per cent to 41.37 per cent. 
   
   All other stakeholders will maintain their stakes at 0.01 per cent in the company. This means the collective stakes of promoters and the promoter group will decrease significantly from 90.13 per cent to 66.24 per cent.
9. Financial summary: The company's total revenue for the period ended September 30, 2023, stood at ₹18.16 crore. The company has shown sustained growth in its total revenue in the last three financial years. For FY21, its revenue was ₹9.61 crore, for FY22, it was ₹16.86 crore and for FY23, it was ₹25.91 crore, as per the RHP. 
   
   Profit after tax (PAT) for the period ended September 30, 2023, stood at ₹2.14 crore. The company had a loss of about ₹12 lakh in FY21 but it closed a profit of ₹78 lakh and ₹1.6 crore in FY22 and FY23 respectively. 
   
   The company's total long-term borrowings for the period ended September 30, 2023, was ₹3.08 crore and the short-term borrowings for the same period were ₹4.02 crore.
10.  Enser Communications IPO allotment and listing: As per media reports, the allotment date of the issue is Wednesday, March 20, 2024, while the listing date is Friday, March 22, 2024.

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