IPO: Ascom Leasing and Investments, an NBFC
Ascom Leasing & Investments Ltd Offer Details Asscom Leasing & Investments Info Issue Open Date 26-11-2019 Issue Close Date 28-11-2019 Listing Date N/A Face Value (Rs) 10.00 Offer Price/Range (Rs) 30.00 Issued at (Value) Premium (20.00) Issue Size (Retail) [email protected]/share Issue Type Public Issue (Fixed Portion) Flags: The company is an NBFC, at a time when the industry is tightening belts and regulators are taking a closer look at the sector. The company saw declining net profit from March 31 2018 to March 31 2019. One income tax case is pending against the company. PRIMARY BUSINESS OF THE COMPANY Ascom Leasing was incorporated in the year 1986. The Company is a Non-Banking Finance Company (“NBFC”) registered with the Reserve Bank of India as a non-deposit taking company. Management comments: "We are a professionally managed and institutionally owned organization which is primarily engaged in providing bespoke Indian Rupee denominated financing solutions to individuals and corporates borrowers in India. Our domain expertise and focus on employees working with public sector undertakings/ enterprises, experienced management team and vigilant monitoring of our assets, our business has experienced growth since the commencement of our effective operations in 2015." NAME OF PROMOTER The Promoter of our Company is Mr. Tushar Rohitbhai Pandya. SIZE OF THE ISSUE Initial Public Offering of 21,08,000 equity shares of face value of ?10/- each, at an Issue price of Rs. 30 per equity share for cash, aggregating Rs. 632.40/- lakhs ("Public Issue"), out of which 1,08,000 Equity Shares at an Issue Price of Rs.30 per equity share for cash, aggregating to Rs.32.40 lakhs has been reserved for subscription by the Market Maker to the Issue (the “Market Maker Reservation Portion”). The Issue less Market Maker Reservation Portion i.e. Issue of 1,08,000 equity shares of face value of Rs.10/- each, at an Issue Price of Rs. 30/- per equity share for cash, aggregating to Rs.32.40 lakhs is hereinafter referred to as the "Net Issue". The Public Issue and Net Issue will constitute 26.99 % and 25.61 % respectively of the post- issue paid-up equity share capital of the Company. OBJECT OF THE ISSUE Fresh Issue The Company intends to utilize the Net Proceeds of the Fresh Issue (Issue proceeds of the Fresh Issue less Company’s part of the Issue Expenses) towards the following Objects: Particulars Amount to be financed by Net Proceeds Percentage of Net Proceeds For the purpose of onward lending, financing and augmenting the capital base 446.80 75.50 General Corporate purposes* 145.00 24.50 Total 591.80 100.00 *The Amount utilised for general corporate purpose shall not exceed 25% of the Net Proceeds of the Issue. Following are details as per the restated financial statements for the period ended June 30, 2019 and the financial years ended on March 31, 2019, 2018 and 2017:27-11-2019