Consider yourself warned about Pace E-Commerce

The company’s smooth listing on the BSE SME platform despite a dubious track record shows how lax scrutiny of the IPO process puts public investors at risk.

You may have heard of Cot & Candy, an e-commerce website that sells children’s furniture, bedding, toys and so on. In case you haven’t, which is hardly surprising, the company was founded in 2015 and its revenue is all of Rs 10 crore.

Yet, this month, the parent, Pace E-Commerce Ventures Ltd, listed on BSE’s platform for small and medium enterprises—a little over a month after filing its draft prospectus. The company raised Rs 41 crore in fresh capital, pricing its shares at Rs 103 each, giving it a discounted price-to-earnings ratio of 343; existing shareholders sold shares worth Rs …

Author

T Surendar

Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.

Executive Editor

surendar@mailtmc.com

Mumbai