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Industry : Finance/NBFC

Abans Holdings View all IPOs

Price Band

Rs 256 to Rs 270

ABANS HOLDINGS is going public with a Fresh Issue and Offer for Sale. The issue opens on 12th December 2022.

MOJO CALL

Why

Avoid

MOJO CALL

Avoid

Neutral

Complex Corporate Structure

Abans Holding has three subsidiaries, each of which has 14 subsidiaries or step-down subsidiaries. This is a very intricate structure. When a company's corporate structure is complex, investors typically feel less at ease.

Inconsistent Subsidiary Performance

The subsidiaries' financial performance has been inconsistent, which is cause for concern. For example, Abans Broking's revenue in FY2021 was Rs 708 crore, but it fell to Rs 27 crore in FY2022. Abans Middle East's revenue increased to Rs 537 crore in FY 2022 from Rs 78 crore in FY2021. In FY2022, the Middle East subsidiary accounted for 83% of the company's revenue.

May Not Have Institutional Investors' Fancy

We believe institutional investors may not have much interest in the company. This could result in lower multiples.

Issue Details

Issue Opens	12th December 2022
Issue Closes	15th December 2022
Price Band	Rs 256 to Rs 270
Issue size (Upper Band)	Rs. 346 Cr
Issue Type	FRESH ISSUE & OFFER FOR SALE
Market cap (based on upper band)	1354 Cr
Sales- March 2022 (Rs./Crs)	646
Net Profit - March 2022 (Rs./Crs)	62
Industry	Finance/NBFC
Promoters	Abhishek Bansal
Lead Manager	Aryaman Financial Services Ltd.

Objective of the Issue

Details

The Objectives of the Offer are to:

1. Continue to invest in the NBFC Subsidiary (Abans Finance Pvt. Ltd) to meet the company's future needs and finance the expansion of its capital base.

2. Generate a corporate purpose.

List of Shareholders Selling Their Stake

NAME	TYPE	Number of Equity Shares for OFS	% of Total Offering (OFS)
Mr. Abhishek Bansal	Promoter	9000000	100%

Business Operations

About Company

Abans Holdings is the financial Arm of Abans group.

The company operates a diversified global financial services business, headquartered in India.

It provides NBFC services, global institutional trading in equities, commodities and foreign exchange, private client broking and AMC services.

The company has a strong global presence. Apart from India, the company is a member of the London Metal Exchange (LME), the Dubai Gold & Commodity Exchange (DGCX), the Dalian Commodity Exchange (DCE) and the Shanghai International Energy Exchange (INE).

The company began as a commodities trading firm before diversifying into a multi-asset and multi-national financial services firm.

Inconsistent Subsidiaries performance
	Mar-22	Mar-21	Mar-20
Abans Middle East
Revenue	537	78	152
PAT	42	33	30
Abans Securities
Revenue	11	316	327
PAT	2	1	0
Abans Broking
Revenue	27	708	1128
PAT	42	1	1

Financials

Financial Overview

In FY23, till August 31, 2022, the company reported a revenue of Rs. 288 crore and a net profit of Rs. 30 crore.

In FY22, the company reported a revenue of Rs. 646 crore and a net profit of Rs. 62 crore.

In FY21, the company reported a revenue of Rs. 1331 crore and a net profit of Rs. 46 crore.

In FY20, the company reported a revenue of Rs. 2772 crore and a net profit of Rs. 39 crore.

Financial Performance (Rs/crore)

(Rs/cr)	April 1, 2022 to August 31, 2022	FY 22	FY 21	FY 20
Sales	288	646	1331	2772
Net profit	30	62	46	39