Introduction
The newest entrant in the IPO market is Abans Holdings Limited belonging to the financial services sector. The company is a subsidiary of the Abans Group which was founded by Mr. Abhishek Bansal.
Abans Holdings Limited IPO will be open for subscription from 12th December 2022 and will close on 15th December 2022. The issue was subscribed overall 1.10 times and only 0.40 times in the retail category.
Here are all the important details of Abans Holdings Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: Top 5 stocks in financial services and sector overview
IPO Details
The various details of the Abans Holdings Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 12th December 2022 |
| IPO Closing Date | 15th December 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs. 2 per share |
| IPO Price Band | Rs. 256 – Rs. 270 per share |
| IPO Size | Rs. 345.60 crores (1,28,00,000 shares) |
| Offer For Sale | Rs. 243 crores (90,00,000 shares) |
| Fresh Issue | Rs. 102.60 crores (38,00,000 shares) |
- IPO Dates
The important dates for the Abans Holdings Limited IPO are highlighted below.
| Event | Date |
| Opening date | 12th December 2022 |
| Closing Date | 15th December 2022 |
| Allotment date | 20th December 2022 |
| Refund Date | 21st December 2022 |
| Share Credit Date | 22nd December 2022 |
| Listing Date | 23rd December 2022 |
- IPO Lot Sizes
Investors can subscribe to the shares of Abans Holdings Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below.
| Category | Details |
| Investment in lots (for retail investors) | Minimum – 1 lotMaximum – 13 lots |
| Shares | Minimum – 55Maximum – 715 |
| Investment amount | Minimum – Rs. 14,850Maximum – Rs. 1,93,050 |
- IPO Reservation
The categories of eligible investors and their share in the IPO are tabled below
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 10% |
| NII (Non-Institutional Bidders) | 30% |
| RII (Retail Individual Investors) | 60% |
Abans Holdings Limited IPO Objectives
The key objectives of the IPO are stated below:
- The company plans to use the proceeds from the IPO for its NBFC subsidiary Abans Finance Private Limited. The funds will help in increasing the capital base and meet future capital needs.
- The other objectives include using the funds for general corporate purposes.
Top things to know about Abans Holdings Limited IPO
Incorporated in 2009, Abans Holdings Limited belongs to the financial sector. It is engaged in multiple businesses including financial services, gold refining, jewellery, commodities trading, Agricultural trading, and warehousing.
The company’s businesses can be broadly categorised as under:
- Finance Business
The NBFC (Non-Deposit taking) business of the company is RBI Registered and provides financial services to its customers.
- Agency Business
This arm of the business provides global institutional trading in equities as well as commodities and foreign exchange, depository services, wealth management and investment advisory services, private client stock broking, and asset management services. The customer base of this business includes corporates, high networth individuals, and institutional investors. The company is a registered member with SEBI as a Stock and Commodity Exchange Broker. It has memberships in all the major stock exchanges in India including BSE, NSE, MCX, MSEI, NCDEX, and ICEX.
- Capital and other businesses
This arm of the company includes internal treasury operations that are charged with managing excess capital funds.
Financials of the company
Abans Holdings Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 1,168 | 638 | 61 | 13.37 | 13.37 | 6.97% |
| Mar-2021 | 1,181 | 1,325 | 45 | 9.88 | 9.88 | 7.46% |
| Mar-2020 | 1,212 | 2,765 | 39 | 8.46 | 8.46 | 9.01% |
Strengths of the company
Some of the key strengths of Abans Holdings Limited that investors can take note of are:
| Category | Details |
| Business model | The business provides an integrated financial services platform and has global exposure in providing innovative financial products with clientele in 6 countries Hongkong, China, the UK, UAE, India, and MauritiusThe company has standardised operating procedures and efficient use of technology for its procedures.The company has the benefit of memberships across all the major stock exchanges in India which includes BSE, NSE, MCX, MSEI, NCDEX, and ICEXThe company also has the benefit of strong relationships with its clients as well as the market participants at every stage |
| Promoter | The company has the backing of an experienced promoter who is a first generation entrepreneur |
Risks of investment
Here are some of the risks that investors of Abans Holdings Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company has posted negative cash flows in the past.The advances made by the NBFC arm of the business are mostly unsecured and may turn bad resulting in a loss for the company.Any downward revision in credit rating coupled with inadequate insurance coverage will be detrimental to the business of the companyThe company operates through a network of 17 subsidiaries and is dependent on them for its overall performance. |
| Competition | The company is not as big in size as compared to its listed peers and may not have enough resources to compete with them. |
What is the Grey Market Premium (GMP) on Abans Holdings Limited IPO?
As of December 19th, 2022, the grey market premium for the shares of Abans Holdings Limited is approximately Rs. -2 as per market observers. This means the company’s shares were available at a discount in the grey market and the listing may likely be timid.
Should you apply to Abans Holdings Limited IPO?
Abans Holdings Limited has seen a significant drop in its revenue over the past years and is lagging behind its peers in key ratios like EBITDA, ROCE, ROAE, and profit margin. Although the company is quite smaller in comparison to its listed peers the IPO is valued quite aggressively. Investors may invest in this IPO to make short-term profits in the form of listing gains but investors considering investments with long-term perspectives can avoid this IPO.
How to apply for Abans Holdings Limited IPO?
Investors can invest in this IPO through the Fisdom app.
FAQs
The company has shown a significant decrease of approximately 50% in its revenue over the past 3 years.
The registrar for Abans Holdings Limited IPO is Bigshare Services Private Limited.
The operations of Abans Holdings Limited are routed through 17 subsidiaries. 3 of these subsidiaries are direct subsidiaries and the rest are indirect or step-down subsidiaries.
The diverse business streams of Abans Holdings Limited include broking services, financial services through the NBFC arm, trading in equities, commodities and foreign exchange, asset management services, Agri Commodity services, Warehousing, Realty and Infrastructure, Gold refining, and more.
Abans Holdings Limited has employed 100 employees as of August 2022.
