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24 November 2023

E Factor Experiences IPO: Crafting Unforgettable Moments in the Financial Landscape

Introduction:

E Factor Experiences IPO, a book-built issue with a total value of Rs 25.92 crores, marks an entirely fresh offering of 34.56 lakh shares. The bidding process unfolded from September 27, 2023, to October 3, 2023, with allotments finalized on October 6, 2023. The eagerly awaited shares debuted on NSE SME on October 9, 2023.

Pricing Insights:

Priced at ₹71 to ₹75 per share, the IPO presented a minimum lot size of 1600 shares. Retail investors were required to invest a minimum of ₹120,000, while High Net Worth Individuals (HNIs) were encouraged to commit a minimum of ₹240,000 for 2 lots (3,200 shares).

Market Performance Highlights:

As of November 17, 2023, E Factor Experiences Ltd (EFACTOR) traded at ₹163.50, marking a 2.32% increase. The stock opened at ₹156.30, reaching a high of ₹164.50 and a low of ₹155.00. The previous close was ₹159.80, with a total traded value of 44,800. The stock exhibited a 52-week high and low of ₹164.50 and ₹155.00, respectively.

IPO Configuration:

The IPO boasted a total issue size of 3,456,000 shares, accumulating up to ₹25.92 crores. The face value per share was ₹10, and the listing occurred on NSE SME.

Ownership Landscape:

Pre-IPO, E Factor Experiences Ltd had a shareholding of 9,632,098, which surged to 13,088,098 post-issue. The market maker, Hem Finlease, retained 174,400 shares.

IPO Allocation:

The IPO distribution reserved 5.05% for the market maker, while Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) received allocations of 18.98%, 14.26%, and 33.24%, respectively.

Financial Overview:

As of March 31, 2023, E Factor Experiences Ltd showcased total assets of ₹5,674.80 lakhs, revenue of ₹11,945.21 lakhs, and a net profit of ₹761.35 lakhs. The net worth stood at ₹1,101.67 lakhs, encompassing reserves and surplus amounting to ₹138.46 lakhs.

Key Financial Metrics:

E Factor Experiences IPO featured a market cap of ₹98.16 crores, with a P/E (x) of 9.59. The Return on Equity (ROE) was an impressive 103.79%, and the Return on Capital Employed (ROCE) was 54.85%. The company demonstrated an Earnings per Share (EPS) of ₹7.82 and a Return on Net Worth (RoNW) of 68.35%.

IPO's Goals:

The net proceeds from the IPO have been allocated for the following:

1. Investment in Subsidiary.
2. Meeting Working Capital requirements.
3. Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company.
4. General Corporate Purpose.

Expert Evaluation:

E Factor Experiences Ltd, operating in the highly competitive and fragmented event management sector, posted significant growth in the last three fiscal years. Based on FY23 earnings, the issue appears fully priced, and well-informed investors might consider long-term investments.

Conclusion:

The remarkable subscription rate of 73.14 times indicates substantial market interest in E Factor Experiences IPO. The company's engagement in various event management services and its promising financial indicators make it an intriguing prospect. Investors, however, are advised to conduct thorough due diligence, considering risk factors, and aligning investments with individual financial goals. Seeking advice from financial experts can provide tailored insights and aid in making informed investment decisions.

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