Review By on September 7, 2016
Crown Lifters Ltd. (CLL) is is one of the professional construction equipment hire Company which has been preferred by large (blue chip) companies. Today the Company is established player in construction equipment hire industry/material handling industry. It is prepared and equipped with resources and operational capabilities to serve ever growing needs of the market.
Company currently has a fleet of cranes which includes Crawler cranes with lattice boom, all terrain cranes with telescopic boom, Rough Terrain, etc. each with different working and tonnage capabilities. Crawlers constitute a major portion of the total fleet size owned.
To part finance purchase of Kobelco Hydraulic Crawler Crane and general corpus funds, the company is coming out with a maiden IPO of 552000 equity share of Rs. 10 each at a fixed price of Rs.121 per share to mobilize Rs. 6.68 crore. Issue opens for subscription on 09.09.16 and will close on 19.09.16. Minimum application is to be made for 1000 shares and in multiples thereon, thereafter. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Since inception till Sept 2014 it issued shares at par. Then it issued bonus shares in the ratio of 2 for 1 in June 2016. Post issue its current paid up equity capital of Rs. 1.53 crore will stand enhanced to Rs. 2.08 crore. Post allotment, shares will be listed on NSE Emerge SME Platform.
On performance front, for last three fiscals, the company has posted turnover / net profit of Rs. 14.40 cr. / (Rs. - 0.11 cr.) (FY14), Rs. 16.15 cr. / Rs. 1.20 cr. (FY15) and Rs. 21.76 cr. / Rs. 2.49 cr. (FY16). Thus if we attribute latest earnings on post issue equity then asking price is at a P/E of 10 plus and at a P/BV of below 1. Thus it looks priced justifiably.
On merchant banker’s front, this is the 17th IPO from its stable and earlier mandates have shown mixed trends.
Conclusion: As infra sector is set for mega spending, companies like this will ripe benefits. Investors may invest for medium to long term rewards in this IPO.
Review By on September 7, 2016
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Crown Lifters Ltd. offers an early investment opportunity in Crown Lifters Ltd.. A stock market investor can buy Crown Lifters IPO shares by applying in IPO before Crown Lifters Ltd. shares get listed at the stock exchanges. An investor could invest in Crown Lifters IPO for short term listing gain or a long term.
Read the Crown Lifters IPO recommendations by the leading analyst and leading stock brokers.
Crown Lifters IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Crown Lifters IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Crown Lifters IPO?"
Our recommendation for Crown Lifters IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Crown Lifters IPO.
The Crown Lifters IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Crown Lifters IPO allotment status to check.
