Review By on September 28, 2016
Pansari Developers Ltd (PDL) is an integrated construction and real estate development company, focused primarily on construction and development of residential and commercial projects, in and around Kolkata, West Bengal. PDL’s residential portfolio currently covers projects catering to customers across all income groups. According to company, it has established a successful track record in the real estate industry in Kolkata, West Bengal by developing versatile projects through its focus on innovative architecture, strong project execution and quality construction. PDL’s projects are marketed under the brand name of “Purti” such as Purti flower, Purti planet, Purti nest, Purti perch, Purti jewel, and Delux Mall. It also plans to enter into project specific joint ventures to enhance its business.
To meet working capital and general corpus funds requirement, the company is coming out with a maiden IPO of 4632000 equity share of Rs. 10 each at a fixed price of Rs. 22 per share to mobilize Rs. 10.19 crore. Issue opens for subscription on 30.09.16 and will close on 06.10.16. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Link Intime India Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME Emerge platform. From incorporation till 2002 it issued equity at par and then in March 2008 it issued at a price of Rs. 20 per share. It has also issued bonus in the ratio of 5 for 1 in June 2016. Post issue its current paid up equity capital of Rs. 12.82 crore will stand enhanced to Rs. 17.45 crore.
On performance front, for the last four fiscals the company has reported turnover/net profit of Rs. 30.67 cr. / Rs. 12.93 cr. (FY13), Rs. 18.07 cr. / Rs. 8.42 cr. (FY14), Rs. 12.17 cr. / Rs. 5.04 cr. (FY15) and Rs. 5.67 cr. / Rs. 1.94 cr. (FY16). Thus its top and bottom line has marked setback on year-on-year basis. If we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 10 plus against industry composite of 25 plus. Thus issue is priced reasonably.
On merchant banker’s front, this is 22nd mandate from its stable and past mandates have shown mixed trends.
Conclusion: Falling trends in top and bottom line is the major concern. However, cash surplus risk savvy investors may consider long term investment for this issue.
Review By on September 28, 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 Pansari Developers Ltd. offers an early investment opportunity in Pansari Developers Ltd.. A stock market investor can buy Pansari Developers IPO shares by applying in IPO before Pansari Developers Ltd. shares get listed at the stock exchanges. An investor could invest in Pansari Developers IPO for short term listing gain or a long term.
Read the Pansari Developers IPO recommendations by the leading analyst and leading stock brokers.
Pansari Developers IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Pansari Developers IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Pansari Developers IPO?"
Our recommendation for Pansari Developers IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Pansari Developers IPO.
The Pansari Developers IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Pansari Developers IPO allotment status to check.
