Cloud computing, monitoring system, and managed service provider E2E network has launched an initial public offering (IPO) today on NSE Emerge. The company has priced each share at Rs 57 with a minimum cap of buying 2,000 shares. It’s issuing shares worth Rs 22 crore and the public offering would be closed on May 7.
The company has a total revenue of Rs 27.2 crore during the first three quarters of the last financial year with having a Rs 5.26 crore profit after tax. E2E Networks going public is a great sign for the Indian startup ecosystem which is plagued by fewer IPOs.
E2E Networks backers – Blume Ventures along with angel investor Freeman Murray and others will continue to be stakeholders in the company. These investors are slated to make hefty returns whenever they decide to dilute stakes.
It’s issuing an Initial public offer of 38,58,000 equity shares, out of which 11,08,000 are issued by existing shareholders and remaining 27,50,000 equity shares are being freshly issued.
The Delhi-based company has been offering Low latency Dedicated and VPS Servers in India since 2009. It delivers solutions for hosting web and enterprise applications.
Founded by Tarun Dua and Mohammad Imran – E2E Networks currently has about 70 employees. Importantly, it’s only operational in India with clientele base including CarDekho, Jabong, and Medianama amongst hundreds of others.
Launched in 2013, NSE Emerge focuses on paving the way for SMEs to go public. Startups with a post-issue paid-up capital less than or equal to Rs 25 crores can stage IPO on the platform.
Companies must not exceed Rs 100 crore in annual revenue and about one-fourth of the pre-issue share compulsory held by select institutional investors for listing on NSE Emerge.
E2E Networks IPO is indeed a great feat for the decade-old company that claims profitability from the very first year. At the same time, an unflinching faith of early-stage investors Blume Ventures and other angels in the company is laudable.
While startup folks like us may not buy E2E Networks share owing to a minimum cap of buying at least 2,000 shares, it certainly gives us the power to think and achieve substantial success with a little capital.