Abans Holdings Ltd IPO

Upcoming DRHP

IPO Synopsis

IPO Synopsis
Abans Holdings, financial services arm of the Abans Group, has filed preliminary papers with capital markets regulator Sebi to mop-up funds through an initial public offering (IPO).
The initial share-sale comprises fresh issuance of equity shares of up to 38 lakh and an offer for sale of up to 90 lakh equity shares by promoter Abhishek Bansal. At present, Bansal holds a 96.45 per cent stake in the company.
The company is considering a pre-IPO placement of up to 2.5 lakh equity shares. If the placement is undertaken, the fresh issue size will be reduced.
Aryaman Financial Services is the sole book-running lead manager to the issue.

Objective of the Issue
Proceeds from the fresh issue will be utilised towards
•    Investment in its NBFC subsidiary, Abans Finance, for financing the augmentation of its capital base to meet future capital requirements
•    for general corporate purposes

About Abans Holdings Ltd

The company operates a diversified global financial services business, providing NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stockbroking, depositary services, asset management services, investment advisory services, and wealth management services to corporate, institutional and high net worth individual clients.
It currently has active businesses across six countries including UK, Singapore, UAE, China, Mauritius, and India.
The company has varied financial services businesses such as:
Finance Business: RBI Registered NBFC (Non-Deposit taking) primarily focused on lending to private traders and other small and medium businesses involved in the commodities trading market
Agency Business: It is SEBI registered Stock and Commodity Exchange Brokers with memberships across all the major stock exchanges in India and FCA registered financial services firm in London and offers various institutional and noninstitutional trading services, wealth management and private client brokerage services, mainly in equity, commodities and foreign exchange.
Capital and other Business: It includes internal treasury operations which manage our excess capital fund. 
The company is primarily a holding company and operates all its businesses through the eighteen (18) subsidiaries (including three (3) direct subsidiaries and fifteen (15) indirect / step-down subsidiaries).
 

Peer Comparison

 

Name of the company

Basic EPS

NAV Rs. per share

PE

RoNW %

Abans Holdings Limited

9.07

121.3

NA

7.48%

Edelweiss Financial Services Ltd.

2.97

73.83

29.37

3.45%

Geojit Financial Services Ltd.

4.78

24.14

15.99

17.79%

Choice International Ltd.

0.7

29.06

207.14

2.42%

 

Financials

Particulars (in Rs. Crores)

FY21

FY20

FY19

Revenue

1325.51

2765.21

4371.37

EBITDA

0.00

0.00

0.00

PAT

42.03

34.88

35.33

EPS (basic in Rs.)

9.07

7.53

7.62

ROE

7.48%

6.98%

9.56%

 

Particulars (in Rs. Crores)

FY21

FY20

FY19

Total Assets

1181.73

1213.05

1086.15

Share Capital

9.27

3.09

0.01

Total Borrowings

267.39

318.79

382.72

 

Particulars (in Rs. Crores)

FY21

FY20

FY19

Net cash generated from / (used in) operating activities

62.23

18.12

-126.50

Net cash from / (used in) investing activities

-3.06

-14.28

-20.75

Net cash flow from / (used in) financing activities

66.01

22.08

184.86

Net increase (decrease) in cash and cash equivalents

125.18

25.92

37.61


The Key points are- 

Key Points

  • Strengths

    •    An integrated financial services platform
    •    Strong human capital and organizational culture
    •    Global exposure providing innovative financial products
    •    Strong relationships with clients and market participants
    •    Standardized operating procedures and efficient use of technology
     

  • Risks

    •    Abans Commodities (I) Private Limited, one of the subsidiaries, is involved in a proceeding before SEBI regarding allegations of participation/facilitation by it of pair-contracts as a trading member/clearing member
    •    Failure to obtain, retain and renew certain approvals and licences in timely manner or comply with rules and regulations
    •    Subject to extensive statutory and regulatory requirements and supervision, which have material influence on, and consequence
    •    Dependent on a few sets of market participants or counter parties w.r.t the physical commodities trading activities which supports online exchange-based trading operations
    •    Any downward revision in its credit ratings could adversely affect their ability to service debts as well as raise funds
    •    Vulnerable to the volatility in interest rates and may face interest rate and maturity mismatches between assets and liabilities in the future which may cause liquidity issues
     

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

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