Brokerage Lakshmi Shree has recommended that investors subscribe to the IPO of Eventions Limited, a Gurugram-based events company. In a report dated September 30, 2026, the broker set a 12-month target price of Rs. 195 per share. Against the upper price band of Rs. 118, that implies an upside of about 65.3%. The book-build issue is worth Rs. 38.12 crore and consists entirely of 32.30 lakh fresh equity shares, with no offer-for-sale component. The subscription window closes on October 5, and the shares are expected to list on the NSE SME platform on October 8.
Why the Broker Likes the Issue
The core of Lakshmi Shree’s call rests on accelerating profit margins relative to top-line sales growth. According to the report, revenue from operations rose from Rs. 86.57 crore in FY24 to Rs. 99.74 crore in FY26. Over the same period, EBITDA more than doubled from Rs. 4.17 crore to Rs. 10.24 crore, and profit after tax rose from Rs. 3.67 crore to Rs. 7.76 crore. The EBITDA margin widened from 4.82% to 10.27%, and net profit margin improved from 4.24% to 7.67%. Revenue growth also picked up in FY26 to about 14%, after only about 1% in FY25. The broker describes this as meaningful operating leverage, because employee costs and overheads are relatively moderate and do not rise in step with revenue.
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Bigger Events, Better Margins
The broker also points to a shift toward larger assignments. Events with billing of Rs. 50 lakh or more rose from 31 in FY25 to 49 in FY26, which Lakshmi Shree says is lifting baseline margins. The company has executed events across Europe, the Middle East and Asia-Pacific, including Spain, France, the Netherlands, Switzerland, Hungary, the UAE, Azerbaijan, Singapore and Indonesia. Its asset-light model, in which it coordinates hotels, transport and production vendors instead of owning venues, keeps fixed investment low and lets it scale projects up or down as corporate spending changes.
Why the IPO Money Matters
Lakshmi Shree says the proceeds address the company’s two biggest constraints, which are high working-capital needs and elevated short-term debt. Of the Rs. 38.12 crore raised, Rs. 27.20 crore is allocated to specific purposes. The largest portion, Rs. 18.80 crore, is for working capital. That matters in this business, because large corporate events often need advance payments to hotels, airlines and vendors before the client pays in full. The broker expects the extra cash to help the company bid for larger contracts and negotiate better with premium travel providers.
Another Rs. 7 crore will repay borrowings. Interest paid rose from Rs. 0.25 crore in FY24 to Rs. 0.67 crore in FY26, and the broker projects it falling to about Rs. 0.21 crore by FY30. Rs. 1.40 crore will go into the subsidiary, Gantu Online, in which the company acquired a 70% stake in March 2026. Lakshmi Shree sees the travel arm as a way to cross-sell leisure travel to the company’s existing corporate contacts.
How the Rs. 195 Target Is Built
The broker projects revenue growing 20% a year to about Rs. 206.82 crore by FY30. It expects the EBITDA margin to climb from about 10% to around 16%, and profit after tax to reach Rs. 26.49 crore. That works out to core earnings per share compounding at roughly 26% a year between FY26 and FY30.
At Rs. 118, the broker values the issue at 11.05 times FY26 core EPS of Rs. 10.68 and 10.6 times FY27E core EPS of Rs. 11.14. The Rs. 195 target comes from applying an average P/E of 17.5 times to FY27E core EPS. The report also runs other scenarios. A 15 times multiple gives Rs. 167.05, which is about 41.6% above the upper band, while a 10 times multiple gives Rs. 111.37, about 5.6% below it. So even the broker’s worst case is only slightly under the issue price, but it is still a loss.
A Strong Start in the Subscription
The recommendation comes as the initial public offering (IPO) attracts robust early investor demand. The issue was about 1.07 times subscribed in the latest snapshot, and the QIB portion was subscribed 19.89 times. QIB bids of about Rs. 38.02 crore were higher than the entire net public issue. Offline grey market quotes are around Rs. 42 per share, although the online tracker Investorgain was still showing a GMP of Rs. 0 on the morning of October 1. GMP is unofficial and can change quickly.
Risks Worth Reading Twice
Lakshmi Shree’s own findings clearly identify key areas of weakness. Banking and insurance clients contribute the majority of revenue, so the company depends on a small cluster of large clients. The business is working-capital intensive, and high unbilled receivables have led to negative operating cash flows. Corporate event spending is discretionary and tends to shrink during economic shocks. The company has a limited operating history, was converted to a public company only in February 2026, and has a history of delays in some mandatory RoC filings. The Gantu Online travel business is new, and a weaker rupee could affect overseas events. The broker also notes that a proposed cap on insurance commissions could reduce discretionary budgets at banks and NBFCs if it is implemented.
There are two more points to keep in mind. The Rs. 195 target depends on the broker’s projections being met, and the report itself says it has not been independently verified against the offer document. The new shares also increase the equity base, so the broker expects core EPS to rise only about 4.3% in FY27E before growth picks up. And as with any SME issue, liquidity after listing can be thin.
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The Takeaway
Lakshmi Shree sees Eventions as a micro-cap opportunity with high operational growth. Its case is that larger international events are lifting margins, the IPO money will cut debt and fund bigger contracts, and the stock is priced at about 11 times earnings on the broker’s own measure. What is less certain is whether the company can hold on to its margin gains, reduce its dependence on a few clients, and turn its profits into cash. Investors should read the RHP carefully, keep an eye on the subscription numbers and the GMP until the issue closes on October 5, and take their own risk appetite into account before applying.