Beacon Trusteeship Limited IPO: Price, Lot Size, Strengths and Risks

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Beacon Trusteeship Limited, a SEBI-registered debenture trustee, is set to launch its SME IPO to raise Rs. 32.52 crores. The subscription period for this IPO is from May 28, 2024, to May 30, 2024. The price band is set between Rs. 57 and Rs. 60 per share, with a minimum lot size of 2,000 shares.

The company provides a comprehensive range of trusteeship services across various sectors, including debenture trustee, security trustee and alternate investment funds, showcasing its diverse expertise and industry reach.

If you are interested in investing in the upcoming Beacon Trusteeship Limited IPO, make sure to read this blog. Here, we will walk you through crucial details about the IPO, the company's background, its strengths, potential risks and more.

Additional Read: How to Invest in an IPO Online

IPO Details

Here is a brief overview of Beacon Trusteeship Limited IPO.

IPO Launch Date

May 28, 2024, to May 30, 2024

Issue Type

Book Built IPO

Listed at

NSE Emerge

Price Band

Rs. 57 to Rs. 60 per share

Face Value

Rs. 10 per share

Minimum Lot Size

2,000 shares (Retail Investors)

Fresh Issue Size

38,72,000 shares

OFS Size

15,48,000 shares

Total Issue Size

Rs. 32.52 crore

Shareholding Pre-Issue

1,41,92,913

Shareholding Post-Issue

1,80,64,913

About the Company

Incorporated in 2015, Beacon Trusteeship Limited is a SEBI-registered Debenture Trustee offering a wide range of trusteeship services. Acting as an intermediary between the issuer and investors, the company’s services encompass custodial services, compliance monitoring, documentation, disclosures and record keeping.

Beacon Trusteeship Ltd operates in over 15 Indian cities, including a strategic office in GIFT City. The company is led by a team of seasoned professionals with extensive expertise in investment banking, finance, debt syndication and broader financial services. As of March 31, 2024, Beacon boasted a workforce of 76 employees and completed 589 assignments, demonstrating its robust operational capacity and industry leadership.

To expand its reach in the trustee industry, Beacon Trusteeship Limited is now launching its inaugural IPO through the book-building route, offering 54,20,000 equity shares at Rs. 10 each to raise Rs. 32.52 crore. The net proceeds from its IPO will be allocated towards building up technology infrastructure and investing in its wholly-owned subsidiary Beacon Investor Holdings Private Limited. The funds will be also used to purchase new office premises and for general corporate purposes.

Additional Read: Difference Between NFO and IPO

IPO Timeline

Beacon Trusteeship Limited has recently announced the tentative timeline with some key dates associated with the launch of its IPO. Take a look.

Open Date 

Tuesday, May 28, 2024

Close Date 

Thursday, May 30, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on May 30, 2024

Basis of Allotment Date

Friday, May 31, 2024

Initiation of Refunds Date

Monday, June 3, 2024

Date of Credit of Shares to Demat

Monday, June 3, 2024

Listing Date 

Tuesday, June 4, 2024

IPO Lot Sizes

To participate in the upcoming Beacon Trusteeship Limited IPO, retail investors must purchase a minimum of one lot consisting of 2,000 shares. The table below outlines the lot sizes for various types of investors:

Application

Lots

Shares

Amount

Retail (Minimum)

1

2,000

Rs. 1,20,000

Retail (Maximum)

1

2,000

Rs. 1,20,000

HNI (Minimum)

2

4,000

Rs. 2,40,000

Company Financials 

Let us take a look at the financial summary of Beacon Trusteeship Limited for the past three years before investing in its IPO.

Particulars

For the Financial Year Ending (In Rs. Lakhs)

 

March 31, 2024

March 31, 2023

March 31, 2022

Total Assets

2,696.56

2,254.30

1,685.14

Total Liabilities

779.03

853.13

668.61

Total Expenses

1,385.93

1,039.20

560.78

Total Revenue

2,091.20

1,572.36

1,049.02

Profit/Loss After Tax

516.36

384.64

 361.58

EBITDA

689.29

499.86

487.67

EPS (Basic and Diluted)

3.64

2.71

2.74

Strengths of the Company

The following points outline the strengths of Beacon Trusteeship Limited, highlighting why its IPO could be a valuable investment opportunity:

Beacon Trusteeship Limited has been in business for 8 years, backed by promoters with extensive experience. The company's legacy and strong background are among its key strengths.

One of the most significant strengths of the company lies in its in-house professional team. Its in-depth and specialised knowledge of the business sets it apart.

It boasts a pan-India presence with a network spanning across various Indian states, as well as a global presence in Singapore.

The company has established a robust performance track record and is renowned for its integrity and reliability.

Risks Involved

When considering an investment in an IPO, it is crucial to analyse the associated risks. Explore the risk factors associated with the business of Beacon Trusteeship Limited.

A few ongoing litigations can pose a risk to the business, potentially impacting its reputation, operations and financial results.

Trustee companies frequently encounter competition from established firms and newcomers. If the competition increases, it may exert downward pressure on fees and margins.

As a trustee company, it has to safeguard the interests of debenture holders. Failure to fulfil obligations and duties adequately may harm its reputation and make it difficult to onboard new clients.

Summing Up

Beacon Trusteeship Limited IPO is all set to launch with the company having received SEBI’s nod. Make sure to have your demat and trading accounts ready by May 28, 2024, and gain detailed insights into the IPO before putting in your money. For all such latest information on upcoming IPOs, stay tuned to our website.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

Who are the selling shareholders of Beacon Trusteeship Limited IPO?

Answer Field

Prasana Analytics Private Limited and Kaustubh Kiran Kulkarni are the selling shareholders of Beacon Trusteeship Limited IPO, offering a total of 15,48,000 shares through the launch. 

Does Beacon Trusteeship Limited have any promoters?

Answer Field

Prasana Analytics Private Limited and Pratapsingh Indrajitsingh Nathani are the promoters of Beacon Trusteeship Limited.

Who is the book-running lead manager for Beacon Trusteeship Limited IPO?

Answer Field

Beeline Capital Advisors Private Limited is the sole book-running lead manager of the Beacon Trusteeship Limited IPO.

What is the latest reported revenue of Beacon Trusteeship Limited?

Answer Field

Beacon Trusteeship Limited earned a revenue worth Rs. 1,991.56 crore in FY24, which is up 34.51% from Rs. 1,480.56 crore in FY22. 

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