Enser Communications IPO at 3% premium on the NSE SME platform

Enser Communications Initial 3% Listing Premium Fades Quickly

On 22 March, Enser Communications a digital marketing company made its entry into the stock market by listing its shares on the National Stock Exchange's SME platform. Enser Communications shares debut at ₹72 a premium of ₹2 over the issue price of ₹70 per share. The initial trading pushed the stock to an intraday high of ₹74 within minutes of listing reflecting a 5.71% increase from the issue price of ₹70. However, as profit taking started the share price retraced touching an intraday low of ₹68.50, slipped below the issue price.

Despite the volatility, Enser Communications market capitalization reached ₹61 crore during the early trading session. Exchange data revealed that approximately 6.8 lakh shares changed hands amounting to a traded value of ₹4.88 crore. At 10.11 am Enser Communications stock was trading flat at ₹70 per share indicating a marginal 2.78% decrease from the listing price but still maintaining the issue price.

Enser Communications: Subscription and IPO Details

Enser Communications, a digital marketing company launched its public offer on 15 March to raise ₹16.17 crore through the issuance of 23.1 lakh fresh shares. The IPO price was fixed at ₹70 per share. Retail investors had to invest a minimum of ₹1,40,000, considering the minimum lot size of 2,000 shares.

The response from investors was overwhelmingly positive as the IPO was oversubscribed more than 7 times by the close of bidding on 19 March. A total of 1,60,62,000 equity shares were applied against 21,92,000 shares on offer, as per exchange data.

Retail investors portion was oversubscribed by 11 times indicating strong retail interest in the offering. Non institutional investors also showed considerable interest by subscribing to 3.72 times their allocated portion, there was no anchor investor portion in this initial public offering.

Enser Communications Ltd plans to utilize the IPO proceeds for several purposes. A portion will be allocated towards setting up a new unit in Gurgaon, Haryana with an estimated cost of ₹7.25 crore. Additionally, the funds will be used to finance working capital requirements and meet other general corporate purposes.

About Enser Communications

Founded in 2008, Enser Communications Ltd is a digital marketing firm that specializes in delivering comprehensive solutions tailored for SMEs and startups. With expertise in business process management, Enser serves various industries including insurance, ecommerce, education and travel.

Enser operates across four key business verticals customer acquisition services, customer services, IT infrastructure management services and data management services. Their offerings includes a wide array of services such as business analytics, interactive voice response systems, customer interaction management solutions, CRM and technology enabled infrastructure development.

In the fiscal year ending March FY23, Enser Communication reported a net profit of ₹160.06 lakhs an increase from ₹77.92 lakhs in the previous year. The company's total revenue also grew reaching ₹2,590.97 lakhs compared to ₹1,686.47 lakhs in the preceding year.

To Summarize

The performance of Enser Communications Ltd on its debut on the NSE Emerge platform has sparked deliberation among investors regarding whether to hold onto their shares or realize their gains. With the stock opening at a modest premium of 2.9% over its IPO price those aiming for listing gains have already secured a 3% profit on the first day of trading.

However, investors with a higher risk appetite may consider retaining their shares for the medium to long term, anticipating potential growth in the company's value. Ultimately, the decision to hold or sell will vary based on individual investment goals and market dynamics.