Gretex Share Broking IPO is a proposed Mainboard Book Built public issue by Gretex Share Broking Limited. The Draft Red Herring Prospectus (DRHP) dated 14 December 2023 proposes an offer comprising a fresh issue of up to 1,67,81,915 equity shares and an Offer for Sale of up to 30,96,000 equity shares. The equity shares are proposed to be listed on both BSE and NSE.
The fresh issue proceeds are proposed to be used primarily for funding the company’s working capital requirements and general corporate purposes. The Offer for Sale comprises shares offered by Sashi Harlalka, Sumeet Harlalka and Alok Harlalka HUF. The company may also consider a pre-IPO placement of up to 33,12,985 equity shares, in which case the fresh issue size would be reduced accordingly.
Gretex Share Broking Limited is a financial services company engaged in stock broking, market making, institutional broking, retail broking and depository participant services. The company is a SEBI-registered market maker and a BSE-registered stock broker. It participates in equity, currency derivatives, futures and options segments and also undertakes proprietary investments in tradable securities.
Table of Contents
Gretex Share Broking IPO Details
| IPO Details | Information |
|---|---|
| IPO Name | Gretex Share Broking IPO |
| Company Name | Gretex Share Broking Limited |
| IPO Type | Book Built Issue |
| IPO Category | Mainboard IPO |
| Face Value | ₹10 Per Equity Share |
| Price Band | Yet to be Updated |
| Issue Size | Up to 1,98,77,915 Equity Shares |
| Fresh Issue | Up to 1,67,81,915 Equity Shares |
| Offer for Sale | Up to 30,96,000 Equity Shares |
| Issue Method | Book Building |
| Listing Exchange | BSE & NSE |
| Lot Size | Yet to be Updated |
| IPO Open Date | Yet to be Updated |
| IPO Close Date | Yet to be Updated |
| Basis of Allotment | Yet to be Updated |
| Refund Initiation | Yet to be Updated |
| Shares Credited to Demat Account | Yet to be Updated |
| Listing Date | Yet to be Updated |
| Registrar | Bigshare Services Private Limited |
| Book Running Lead Manager | Pantomath Capital Advisors Private Limited |
The DRHP proposes a total offer of up to 1,98,77,915 equity shares, consisting of up to 1,67,81,915 fresh shares and up to 30,96,000 shares offered by selling shareholders. The price band and minimum bid lot were to be decided in consultation with the Book Running Lead Manager and announced before the IPO opens.
Gretex Share Broking IPO Dates
| IPO Event | Date |
|---|---|
| Anchor Investor Bidding | Yet to be Updated |
| IPO Opening Date | Yet to be Updated |
| IPO Closing Date | Yet to be Updated |
| Basis of Allotment | Yet to be Updated |
| Refund Initiation | Yet to be Updated |
| Shares Credited to Demat Account | Yet to be Updated |
| Listing Date | Yet to be Updated |
The DRHP does not specify the final bidding timetable. The bid opening and closing dates, allotment date, refund date, demat credit date and listing date should therefore be updated only after the company releases the applicable RHP and final IPO schedule.
Gretex Share Broking IPO Reservation
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIB) | Not More Than 50% of the Offer |
| Non-Institutional Investors (NII) | Not Less Than 15% of the Offer |
| Retail Individual Investors (RII) | Not Less Than 35% of the Offer |
The proposed IPO follows the book-building process. Not more than 50% of the offer is proposed to be available for allocation to Qualified Institutional Buyers, not less than 15% to Non-Institutional Investors and not less than 35% to Retail Individual Investors, subject to the applicable SEBI regulations and valid bids.
Gretex Share Broking IPO Lot Size
| Application | Shares | Amount |
|---|---|---|
| Retail Minimum | Yet to be Updated | Yet to be Updated |
| Retail Maximum | Yet to be Updated | Yet to be Updated |
| S-HNI Minimum | Yet to be Updated | Yet to be Updated |
The minimum bid lot was not disclosed in the DRHP. The company stated that the price band and minimum bid lot would be decided in consultation with the Book Running Lead Manager and announced before the opening of the offer. Therefore, the minimum application amount cannot be calculated at this stage.
About Gretex Share Broking Limited
Gretex Share Broking Limited was originally incorporated as Sherwood Securities Private Limited on 29 April 2010. The company subsequently changed its name to Gretex Share Broking Private Limited in 2017 and was converted into a public limited company in 2023. A fresh certificate of incorporation following conversion into a public limited company was issued on 4 September 2023.
The company provides financial market services including stock broking, market making, institutional broking, retail broking and depository participant services. It is a SEBI-registered market maker and a BSE-registered stock broker. The company’s business model is focused on facilitating buying and selling of securities and creating liquidity in listed companies.
Gretex Share Broking participates in the equity, currency derivatives, futures and options segments of BSE and NSE. It also undertakes proprietary investments across various tradable securities and provides market-making services for companies that choose to get listed on stock exchanges.
Business Operations
Gretex Share Broking Limited operates across several financial market and capital market activities.
- Stock Broking – The company facilitates buying and selling of securities for investors through its stock broking operations.
- Market Making – It provides market-making services designed to create liquidity and facilitate trading in listed securities.
- Institutional Broking – The company provides broking services to institutional clients and is empanelled with institutions for such services.
- Retail Broking – It provides services to retail investors for transactions in securities markets.
- Depository Participant Services – The company provides depository-related services as a participant of NSDL.
- Equity Trading – It participates in the equity segment of BSE and NSE.
- Currency Derivatives – The company participates in currency derivative market activities.
- Futures and Options – It undertakes transactions in futures and options segments.
- Proprietary Investments – The company invests in various tradable securities for its own account.
- Market-Making Services for IPOs – It acts as a market maker for companies seeking to list their securities, particularly in the SME segment.
- Underwriting and Capital Market Support – Its broader activities include supporting capital-market transactions and providing liquidity-related services.
The company’s website states that its objective is to create liquidity in the market and facilitate buying and selling of securities as a market maker and stock broker.
Industry Overview
India’s financial services industry has expanded alongside increasing participation in equity markets, growth in demat accounts, development of capital markets and increasing activity in IPOs. The expansion of SME listings has also created opportunities for market makers, brokers and other intermediaries involved in public issues.
Stock broking companies benefit from trading activity across equity, derivatives and other market segments. Market-making services can provide another source of revenue by supporting liquidity in listed securities and helping companies meet applicable market-making requirements.
The growth of digital investing, increased retail participation and expansion of institutional activity can provide long-term opportunities for financial-market intermediaries. However, the sector remains highly competitive and is influenced by market volumes, investor participation, regulatory changes, technology requirements and pricing pressure.
Brokerage and financial services businesses are also exposed to fluctuations in market activity. A decline in trading volumes, changes in regulations, technology failures, cybersecurity incidents or increased competition can affect operating performance and profitability.
Business Strategy
Gretex Share Broking Limited focuses on strengthening its presence across stock broking, market making, institutional broking, retail broking and depository services. Its integrated business model allows it to participate in multiple activities across the capital markets.
The company intends to use the fresh issue proceeds primarily for meeting working capital requirements and general corporate purposes. Additional working capital is expected to support the company’s trading and market-making operations as the business expands.
The company also aims to continue its market-making activities and build relationships with companies seeking access to capital markets. Its experience in market making and stock broking provides a base for expanding its financial-services operations.
Gretex Share Broking IPO Financial Information
A company’s financial performance provides valuable insights into its revenue growth, profitability, operating efficiency and financial stability. Reviewing financial statements over multiple years helps investors understand the company’s earnings profile and changes in its financial position.
Gretex Share Broking Financial Summary
| Particulars | FY2021 | FY2022 | FY2023 |
|---|---|---|---|
| Revenue from Operations | ₹13.16 Crore | ₹39.66 Crore | ₹102.62 Crore |
| Total Income | ₹15.25 Crore | ₹41.26 Crore | ₹106.46 Crore |
| EBITDA | -₹0.06 Crore | ₹10.55 Crore | ₹62.59 Crore |
| Profit Before Tax (PBT) | -₹0.71 Crore | ₹10.13 Crore | ₹61.55 Crore |
| Profit After Tax (PAT) | -₹0.65 Crore | ₹8.55 Crore | ₹46.75 Crore |
| Net Worth | ₹15.95 Crore | ₹32.03 Crore | ₹66.64 Crore |
| Total Borrowings | ₹0.44 Crore | ₹0.16 Crore | ₹0.59 Crore |
| Total Assets | ₹18.05 Crore | ₹35.93 Crore | ₹82.88 Crore |
The company reported significant growth in revenue and profitability during FY2022 and FY2023. Revenue from operations increased from ₹39.66 crore in FY2022 to ₹102.62 crore in FY2023, while PAT increased from ₹8.55 crore to ₹46.75 crore. Net worth increased from ₹32.03 crore to ₹66.64 crore during the same period.
For the four months ended 31 July 2023, the company reported revenue from operations of ₹20.92 crore and profit after tax of ₹6.11 crore. The DRHP’s KPI disclosure for the period ended 31 October 2023 subsequently reported revenue from operations of ₹16.69 crore and PAT of ₹2.23 crore on the restated financial information.
Gretex Share Broking IPO Key Performance Indicators (KPIs)
Key Performance Indicators help investors assess the company’s profitability, operating efficiency, financial strength and capital utilisation. These indicators provide additional insights into the company’s performance when evaluated alongside revenue, earnings and net worth.
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 40.36% |
| Return on Capital Employed (ROCE) | 23.05% |
| EBITDA Margin | 18.03% |
| PAT Margin | 13.40% |
| Earnings Per Share (EPS) | ₹8.07 |
| Net Asset Value (NAV) Per Share | ₹39.89 |
| Debt-to-Equity Ratio | 0.02 |
| Price to Earnings (P/E) | Yet to be Updated |
For FY2023, the DRHP reported revenue from operations of ₹2,306.59 lakh, EBITDA of ₹415.91 lakh and PAT of ₹308.99 lakh on the KPI basis. EBITDA margin was 18.03%, PAT margin was 13.40%, ROE was 40.36% and ROCE was 23.05%. NAV per equity share was ₹39.89.
The P/E ratio cannot be calculated reliably until the company announces the final IPO price. It should therefore be updated after the price band and final issue price are officially disclosed.
Objects of the Gretex Share Broking IPO
The company intends to utilise the net proceeds from the fresh issue for the following purposes:
- Funding working capital requirements – approximately ₹130 crore.
- General corporate purposes – the balance amount as permitted under the applicable regulations.
- Issue-related expenses – to be met from the IPO proceeds as specified in the final issue documents.
The company stated that the fresh issue proceeds, to the extent of ₹130 crore, would be used for funding its working capital requirements and general corporate purposes. The final allocation should be updated from the RHP and Prospectus when issued.
The proceeds from the Offer for Sale will be received by the respective selling shareholders and will not form part of the company’s funds.
Gretex Share Broking IPO Listing Performance
The listing performance reflects how the company’s shares perform on the stock exchanges after the IPO. Since the IPO has not received a final price band, bidding schedule or listing date in the available DRHP, the actual listing price and listing gain are not available.
| Particular | Value |
|---|---|
| Listing Exchange | BSE & NSE |
| Listing Date | Yet to be Updated |
| Issue Price | Yet to be Updated |
| Listing Price | To be updated |
| Listing Gain | To be updated |
| Listing Gain (%) | To be updated |
The DRHP proposes listing the equity shares on BSE and NSE. The designated stock exchange was to be specified in the final issue documents.
Gretex Share Broking IPO Subscription Status
The subscription figures indicate the level of investor participation received during the IPO bidding period. Strong subscription can reflect investor interest, although subscription figures should be evaluated along with the company’s valuation, financial performance, market conditions and long-term business prospects.
Gretex Share Broking IPO Subscription
| Investor Category | Subscription |
|---|---|
| Qualified Institutional Buyers (QIB) | To be updated |
| Non-Institutional Investors (NII) | To be updated |
| Retail Individual Investors (RII) | To be updated |
| Employee Category | To be updated |
| Total Subscription | To be updated |
The final subscription figures are not available because the IPO bidding dates have not been announced in the available DRHP. The table should be updated after the issue opens and category-wise subscription data becomes available.
Gretex Share Broking IPO Review
Gretex Share Broking Limited operates across multiple segments of India’s capital markets, including stock broking, market making, institutional broking, retail broking and depository participant services. Its participation in equity, currency derivatives, futures and options provides exposure to several trading segments.
The company’s market-making business is an important part of its operations. Gretex Share Broking provides liquidity services for companies listed or seeking listing, particularly in the SME segment. The company states that it aims to create maximum liquidity and facilitate buying and selling of securities for companies that choose to get listed on stock exchanges.
The company has demonstrated strong growth in revenue and profitability in the financial years covered by the DRHP. Revenue from operations increased from ₹39.66 crore in FY2022 to ₹102.62 crore in FY2023, while PAT increased from ₹8.55 crore to ₹46.75 crore. Net worth also increased significantly during the period.
The company also maintained a relatively low borrowing level compared with its net worth. Its integrated business model across market making, broking and depository services may allow it to generate revenue from multiple capital-market activities.
However, the business remains sensitive to market conditions and trading volumes. Regulatory changes, increased competition, cybersecurity incidents, technology failures and fluctuations in market participation can affect financial performance. The company also faces the risks associated with proprietary investments and market-related activities.
Overall, Gretex Share Broking operates in a growing financial-services ecosystem with exposure to India’s expanding capital markets. Investors should carefully evaluate the final IPO valuation, latest financial results, regulatory risks, competitive position and use of IPO proceeds before making an investment decision.
Gretex Share Broking IPO Strengths
- Integrated financial-market business covering stock broking, market making and depository services.
- Strong growth in revenue and profitability reported between FY2022 and FY2023.
- Established market-making experience across companies seeking stock exchange listings.
- Participation across multiple market segments including equity, currency derivatives, futures and options.
- Low borrowing levels compared with net worth in the DRHP financial period.
- Growing Indian capital-market participation provides long-term opportunities for financial intermediaries.
Gretex Share Broking IPO Risk Factors
- The business is highly dependent on capital-market activity, trading volumes and investor participation.
- Changes in SEBI and stock-exchange regulations may affect the company’s operations and compliance costs.
- Cybersecurity breaches, technology failures or system disruptions could adversely affect business operations.
- Market fluctuations may affect proprietary investments and trading-related income.
- The company operates in a competitive financial-services industry with pressure on pricing and margins.
- Negative cash flows have been reported in the past, which may affect working capital and financial flexibility.
Gretex Share Broking IPO Promoters
Gretex Share Broking Limited is promoted by Alok Harlalka, Arvind Harlalka, Anita Harlalka, Rajkumari Harlalka, Pooja Harlalka, Sashi Harlalka, Gretex Corporate Services Limited, Ambition Tie-Up Private Limited and Talent Investment Company Private Limited. These promoters form the promoter group identified in the DRHP.
The promoter group has experience across financial services, capital markets and related businesses. Gretex Corporate Services Limited is the group’s merchant-banking and capital-markets company, while Gretex Share Broking focuses on stock broking and market-making activities.
Gretex Share Broking IPO Promoters Details
| Promoter | Designation |
|---|---|
| Alok Harlalka | Promoter |
| Arvind Harlalka | Promoter |
| Anita Harlalka | Promoter |
| Rajkumari Harlalka | Promoter |
| Pooja Harlalka | Promoter |
| Sashi Harlalka | Promoter |
| Gretex Corporate Services Limited | Promoter |
| Ambition Tie-Up Private Limited | Promoter |
| Talent Investment Company Private Limited | Promoter |
The above promoter names are based on the promoter disclosure in the company’s DRHP.
Gretex Share Broking IPO Management Team
The company is led by a management team with experience in stock broking, financial services, market operations and corporate management.
| Name | Designation |
|---|---|
| Arvind Harlalka | Managing Director & Chief Financial Officer |
| Alok Harlalka | Director |
| Noratan Singh Rao | Executive Director |
| Navdeep Nigam | Independent Director |
Arvind Harlalka has extensive experience across accounts, finance, marketing and manufacturing and plays an important role in the group’s strategic initiatives. Alok Harlalka has experience in stock-broking operations and previously worked as an RMS Manager. Noratan Singh Rao serves as Executive Director and Navdeep Nigam is an Independent Director.
Gretex Share Broking IPO Registrar Details
The registrar is responsible for processing IPO applications, finalising the basis of allotment, crediting equity shares to successful applicants, initiating refunds and handling investor-related services.
| Particular | Details |
|---|---|
| Registrar Name | Bigshare Services Private Limited |
| Website | https://www.bigshareonline.com |
| IPO Allotment Status | To be updated |
| Email ID | [email protected] |
| Contact Number | +91-22-6263 8200 |
Bigshare Services Private Limited has been appointed as the Registrar to the Offer. Its registered office is at S62, 6th Pinnacle Business Park, Mahakali Caves Road, Andheri East, Mumbai.
Gretex Share Broking IPO Lead Manager Details
The Book Running Lead Manager is responsible for managing the IPO process, coordinating regulatory compliance and assisting the company throughout the public issue.
| Particular | Details |
|---|---|
| Lead Manager | Pantomath Capital Advisors Private Limited |
| Contact Person | Ruchira Singhania |
| Email ID | [email protected] |
| Contact Number | +91-22-6194 6700 |
Pantomath Capital Advisors Private Limited is the sole Book Running Lead Manager to the proposed offer.
Gretex Share Broking Limited Contact Details
| Particular | Details |
|---|---|
| Company Name | Gretex Share Broking Limited |
| Registered Office | A-401, Floor 4th, Plot FP-616, Naman Midtown, Dadar West, Mumbai – 400013, Maharashtra |
| Website | https://www.gretexbroking.com |
| Email ID | [email protected] |
| Contact Number | +91-22-6930 8500 |
The company’s website lists its registered office at Naman Midtown, Dadar West, Mumbai and provides its official contact numbers and email addresses.
How to Check Gretex Share Broking IPO Allotment Status
Investors can check the IPO allotment status after the basis of allotment is finalised through the registrar’s website or the applicable BSE/NSE IPO portal.
Through Bigshare Services Private Limited
- Visit the official Bigshare IPO allotment portal.
- Select Gretex Share Broking IPO from the IPO list.
- Choose PAN Number, Application Number or DP/Client ID.
- Enter the required details.
- Click Submit to view the allotment status.
Through BSE/NSE
- Visit the applicable official stock-exchange IPO section.
- Select the Gretex Share Broking IPO from the IPO list.
- Enter your PAN Number or Application Number.
- Complete the verification process if required.
- Click Search to view the allotment result.
Gretex Share Broking IPO Conclusion
Gretex Share Broking IPO provides investors with an opportunity to participate in a financial-services company operating across stock broking, market making, institutional broking, retail broking and depository participant services. Its diversified capital-market activities provide exposure to several segments of India’s growing financial ecosystem.
The company has demonstrated substantial growth in revenue and profitability in the financial years covered by its DRHP. Revenue from operations increased from ₹39.66 crore in FY2022 to ₹102.62 crore in FY2023, while PAT increased from ₹8.55 crore to ₹46.75 crore. Net worth also increased considerably during the same period.
The proposed fresh issue is intended primarily to strengthen the company’s working capital position and support general corporate purposes. The company’s experience in market making and its presence across several capital-market activities provide potential opportunities for future growth.
However, investors should also consider market volatility, regulatory changes, technology and cybersecurity risks, competition, proprietary investment exposure and fluctuations in trading volumes. The final price band and IPO timetable are also yet to be announced in the available DRHP.
A detailed assessment of the final IPO valuation, latest financial performance, business strategy, regulatory environment, competitive position and risk factors can help investors determine whether the Gretex Share Broking IPO is suitable for their investment objectives.
Gretex Share Broking IPO FAQs
What is Gretex Share Broking IPO?
Gretex Share Broking IPO is the proposed Mainboard public issue of Gretex Share Broking Limited. The DRHP proposes a fresh issue of up to 1,67,81,915 equity shares and an Offer for Sale of up to 30,96,000 equity shares.
What is the price of Gretex Share Broking IPO?
The price band and final issue price have not been announced in the available DRHP. The company is expected to disclose the price band before the IPO opens.
What is the issue size of Gretex Share Broking IPO?
The proposed offer comprises up to 1,98,77,915 equity shares, including up to 1,67,81,915 fresh equity shares and up to 30,96,000 equity shares offered for sale.
When will the Gretex Share Broking IPO open?
The IPO opening date has not been announced in the available DRHP. The final bidding schedule is yet to be updated.
When will the Gretex Share Broking IPO close?
The IPO closing date has not been announced. The final issue timetable will be disclosed before the IPO opens.
On which stock exchanges will Gretex Share Broking shares be listed?
The DRHP proposes listing the company’s equity shares on BSE and NSE.
Who is the registrar for the Gretex Share Broking IPO?
Bigshare Services Private Limited is the registrar to the proposed Gretex Share Broking IPO.
What is the face value of Gretex Share Broking IPO shares?
The face value of each equity share is ₹10.
What does Gretex Share Broking Limited do?
Gretex Share Broking Limited is engaged in stock broking, market making, institutional broking, retail broking and depository participant services. It also participates in equity, currency derivatives, futures and options markets and undertakes proprietary investments.
What are the objects of the Gretex Share Broking IPO?
The company proposes to use the fresh issue proceeds primarily for funding its working capital requirements and general corporate purposes. The DRHP states that up to ₹130 crore is proposed for working capital requirements.
