Review By on March 29, 2016
Lancer Container Lines Ltd (LCLL) is engaged in providing various logistics services such as NVOCC, Shipping and freight forwarding, provision of yards for storage of empty containers, inland transport service etc. It is also engaged in trading and leasing of containers. LCLL provides all these services worldwide. Currently it has more than 3000 containers which are available for NVOCC operations. It has partnered with CARU Containers, an international market leader in this field, to enhance its global reach.
To part finance its plans for procuring new containers and raise general corpus fund, the company is coming out with a maiden IPO of 1540000 equity share of Rs. 10 each at a fixed price of Rs. 12 per share to mobilize Rs. 1.85 crore. Issue opens for subscription on 31.03.16 and will close on 05.04.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue.
Based on Rs. 10 paid up basis, in January and February 15 it issued fresh equity at a premium of Rs. 42.4 and Rs. 2.50. It also issued bonus in the ratio of 1 for 2. There after it issued fresh equity at a price of Rs. 20 per share during October 15 - January 16. Its current paid up equity capital of RS. 4.17 crore will stand enhanced to Rs. 5.71 crore post issue.
On performance front, its top line has been showing rising pattern since 2012 till now, but bottom line has declined in 2015. Its turnover/ net profits were Rs. 5.48 cr. / Rs. 0.01 cr. (FY12), Rs. 20.62 cr. / Rs. 0.17 cr. (FY13), Rs. 22.16 cr. /Rs. 0.44 cr. (FY14) and Rs. 30.42 cr. / Rs. 0.42 cr. (FY15). For first six months ended 30.09.15 it has posted net profit of Rs. 0.38 crore on a turnover of Rs. 20.86 crore. If we annualize these earnings and attribute it on fully diluted equity post this IPO then EPS will be around Rs. 1.33 and the asking price is at a P/E of 9 that augurs well.
On merchant banker’s front, this is 17th IPO from its stable and earlier 15 mandates have given mixed performances post listing.
Issue is priced justifiably and the sector is heading for bright prospects ahead. Long term investors may consider parking their funds in this IPO.
Review By on March 29, 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 Lancer Container Lines Ltd. offers an early investment opportunity in Lancer Container Lines Ltd.. A stock market investor can buy Lancer Container Lines IPO shares by applying in IPO before Lancer Container Lines Ltd. shares get listed at the stock exchanges. An investor could invest in Lancer Container Lines IPO for short term listing gain or a long term.
Read the Lancer Container Lines IPO recommendations by the leading analyst and leading stock brokers.
Lancer Container Lines IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Lancer Container Lines IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Lancer Container Lines IPO?"
Our recommendation for Lancer Container Lines IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Lancer Container Lines IPO.
The Lancer Container Lines IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Lancer Container Lines IPO allotment status to check.
