E2E Networks IPO is a new SME IPO of 2018. E2E Networks, a cloud infrastructure company, is soon going to come up with an IPO sized about Rs. 2,000 lacs by the end of this calendar year. The IPO constitutes 27% of the post issue paid up capital of the company.
The company is currently backed by Blume Ventures Group and by the promoters of the company. Read this article to know more details about this upcoming IPO like the IPO size, IPO offer price, IPO release date, company background, company financial details, grey market premium etc.
E2E Networks IPO Review & Ratings
|E2E Networks IPO Ratings & Review|
|Top Brokers Review||6.2/10|
Summary of E2E Networks IPO
E2E Netwroks was set up in 2009 and has strived to attain technical innovation in the Cloud migration and Deployment for their clients. The company launched contract-less computing in India, way back in 2009.
We followed this up by launching hourly billed pure SSD (Solid-State-Drive) public cloud and private cloud. The Cloud Infrastructure has been used by many well-known companies across industries like E-Commerce, Digital Classified, BFSI and whole host of new-age digital businesses.
E2E Networks is floating an IPO worth Rs. 2,199 lakhs consisting of 38,58,000 equity shares. Certain part of this is going to be by way of secondary issue i.e. sale of existing shares by the current shareholders of the company. The secondary sale portion constitutes 11,08,000 shares. There are all in all 6 shareholders/investors whose stake will be diluted through this secondary issue.
The lead manager of E2E Networks IPO is Holani Consultants Private Limited and the registrar to the offer is Link Intime India Private Limited.
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E2E Networks IPO Date
The IPO release date for E2E Networks IPO is 3rd may 2018 & issue closes on 7th may 2018.
E2E Networks IPO Subscription
Upon releasing of the IPO, the details of shares subscribed by the public will be updated herein on a daily basis.
E2E Networks IPO Allotment Status
The allotment details pertaining to the shares subscribed will be updated here, once the company is done with the allotment process. The dates of allotment process commencement and conclusion will also be updated herein once the company decides on the schedule of the IPO.
E2E Networks IPO Price Band
E2E Networks has fixed the offer price for the IPO at Rs. 57 per equity share. The offer price holds a premium of Rs. 47 per equity share. Offer price is decided by the company and the lead manager by way of book building process.
E2E Networks IPO Issue Size
The subject IPO aims to collect funds to the tune of Rs. 2,199 lacs. Out of this, the fresh issue would be amounting to Rs. 1567.50 lacs and balance would be raised by way of secondary issue i.e. diluting the stake of promoters/investors.
E2E Networks IPO Equity Share Offerings
E2E Networks constitutes of 3,858,000 equity shares, of which 2,750,000 are fresh shares. The balance shares are those which are currently held by the following shareholders/promoters/investors:
- Manjit Rai Dua – 1,14,297 equity shares
- Shaily Dua – 1,25,567 equity shares
- Sunchita Baweja – 1,25,567 equity shares
- Blume Ventures Fund I – 5,16,548 equity shares
- Blume Ventures Fund IA – 2,26,021 equity shares
Out of the 3,858,000 equity shares, 194,000 equity shares have been reserved for the market makers. The total issue i.e. 3,858,000 represents 27.08% of the post issue paid up capital of the company
E2E Networks Limited – Company Overview
E2E Networks Limited is in the business of, providing Cloud Infrastructure in India. Since their inception in 2009, The Company has strived to attain technical innovation in the Cloud migration and Deployment for their clients. E2E Networks Limited launched contract-less computing in India, way back in 2009.
E2E Networks Limited followed this up by launching their hourly billed pure SSD (Solid-State-Drive) public cloud and private cloud. The Cloud Infrastructure has been used by many well-known companies across industries like E-Commerce, Digital Classified, BFSI and whole host of new-age digital businesses.
Using their experience in implementing and managing infrastructure they have built fully cloud agnostic Cloud Operation Management (CloudOps) platform, which can directly use the hypervisor host machines on more than 2,000 public clouds across the world.
Many of India’s best-known digital businesses have been using our CloudOps platform to boost measurable performance, while at the same time reducing their cloud spend. The CloudOps platform uses a unique blend of automation delivered via technology combined with human intelligence, to drastically reduce the workload of your in-house DevOps team by freeing them from the worry of managing basic issues related to normal course of business.
The product profile of the company includes Cloud Infrastructure and managed service (CloudOps).
Key members of E2E Networks Limited:
- Tarun Dua, Chairman cum Managing Director
- Shrishti Baweja, Whole time Director
- Manjit Rai Dua, Non-executive Director
- Varun Pratap Rajda, Additional Independent Director
- Gaurav Munjal, Additional Independent Director
Competitive Strengths of E2E Networks Limited:
- Focus on Quality and Innovation
- Our Experienced Management
- Wide range of products
- Existing relationship with the clients
- Round the clock Operation center (24*7)
- Lower cost structure
Business strategy of E2E Networks Limited:
- Brand image
- Capitalize on growing demand
- Expanding customer base
E2E Networks – Financial Statements
A quick look into the important figures of the company like the revenue, profit, EPS and the asset base of the company:
Assets of the Company
|Assets (in INR & Lakh)|
Revenue & PAT of the Company
|Revenue & Profits (in INR & Lakh)|
|Profit after Tax (PAT)||421||222||84||28||26|
Earnings per Equity Share
|Earning per Equity Share (in INR)|
The company has been seeing quite a good growth in its revenue as well PAT figures. The same trend has been reflected in the EPS of the company. Thus indicating a good investment opportunity.
E2E Networks Promoters
The key promoters of E2E Networks are:
- Mr. Tarun Dua; and
- Ms. Shrishti Baweja
Promoter Interest in the company
Promoters are interested in the Company to the extent that they have promoted our Company and to the extent of their shareholding and the dividend receivable, if any and other distributions in respect of the Equity Shares held by them.
Some of the Promoters are the Directors and KMP of the Company and may be deemed to be interested
to the extent of remuneration and/ or reimbursement of expenses payable to them for services rendered to the company.
Promoter Interest in property of the company
The Promoters have no interest in any property acquired by the Company within two years of the date of the latest prospectus released.
E2E Networks IPO Offer Details or Issue Details
|Particulars||No. of Equity Shares|
|Equity Shares offered||38,58,000 Equity Shares of face value of Rs.10/- each fully paid up of the Company for cash at price of Rs. 57/- per Equity Share aggregating Rs. 2199.06 lakhs|
|Fresh Offer||27,50,000 Equity Shares of face value of Rs. 10/- each fully paid up of the Company for cash at price of Rs. 57 /- per Equity Share aggregating Rs. 1567.50lakhs|
|Offer for sale||11,08,000 Equity Shares of face value of Rs. 10/- each fully paid up of the Company for cash at price of Rs. 57 /- per Equity Share aggregating Rs.631.56 lakhs|
|The offer consists of:|
|Market Maker Reservation Portion||1,94,000 Equity Shares of face value of Rs. 10/- each fully paid up of the Company for cash at price of Rs. 57 /- per Equity Share aggregating Rs. 110.58 lakhs|
|Net Issue to the Public*||17,10,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 56/- per Equity Share aggregating Rs.9,57,60,000/-.|
|18,32,000 Equity Shares of face value of Rs. 10/- each fully paid up of the Company for cash at price of Rs. 57/- per Equity Share aggregating Rs. 1044.24 lakhs will be available for allocation for allotment to Investors of up to Rs. 2 lakhs.|
|18,32,000 Equity Shares of face value of Rs. 10 /- each fully paid up of the Company for cash at price of Rs. 57/- per Equity Share aggregating Rs. 1044.24 lakhs will be available for allocation to investors above Rs. 2 lakhs|
|Equity Shares outstanding prior to the Issue||1,14,95,110 Equity Shares|
|Equity Shares outstanding after the Issue||1,42,45,110 Equity Shares|
E2E Networks IPO Issue Object
E2E Networks Limited is floating this IPO in the market to achieve the following objectives:
- Working Capital requirements
- General Corporate Purposes
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E2E Networks IPO – Basis of the Offer Price
The Offer Price is determined by our Company and the Selling Shareholders, in consultation with the Lead Manager on the basis of the assessment of market demand for the Equity Shares through the Fixed Issue price method and on the basis of the below discussed qualitative and quantitative factors for the Equity Shares. The face value of the Equity Shares is Rs. 10/- each and the Offer Price is 5.7 times of the face value.
Qualitative factors influencing the offer price:
- Experienced Management and Operational Team
- Wide Portfolio of Clients
- Diverse and Quality Services
- Well Established Infrastructure
- Increased Collaboration
- Bright Growth Prospects of the Industry as a whole
Quantitative factors influencing the offer price:
- Earning per share – The latest three year weighted average EPS for E2E Networks is Rs. 3.70 and the diluted EPS is Rs. 3.67.
- Price/earning ratio – The PE ratio for E2E Networks for FY 2016-17 is 21.67 vis-a-vis the industry average of 942.33.
- Return on Net Worth – The RoNW on a weighted average basis for the three latest years is 33.28%. The minimum RoNM after Issue needed to maintain Pre-Issue EPS for the year ended March 31, 2017 is 19.64%
- Net Asset Value – NAV per Equity Share – The net asset value per equity share for FY 2016-17 is Rs. 9.63. Post the issue, the NAV per share would be Rs. 17.87
- Comparison of Accounting ratios with Industry peers – The peer group includes 8K Miles Software Services.
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E2E Networks IPO Lead Managers
|Holani Consultants Private Limited|
E2E Networks IPO Registrar to offer
|Registrar of the Offer|
|Link Intime India Private Limited|
E2E Networks IPO Review by Top 10 Stock Brokers
|Top Stock Brokers Review||Company Repu-tation||Compe-titive Edge||Finan-cial State-ment||Popu-larity Index||Promo-ters Repu-tation|
E2E Networks IPO Grey Market Premium
The grey market for E2E Networks will open 15 days before the release of the IPO. Grey market price or the kostak rate would also be floating around in the market a fortnight before the release of the IPO.
The grey market price would mostly be at grey market premium which may be higher or lower than the offer price. This section will be updated with the details, once the grey market opens.
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