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Crown Lifters Ltd NSE SME IPO review (Apply)

Review By Dilip Davda on Sep 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.


Conclusion / Investment Strategy

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.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 7, 2016

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Crown Lifters IPO FAQs

  1. 1. Why Crown Lifters IPO?

    The initial public offer (IPO) of Crown Lifters Limited offers an early investment opportunity in Crown Lifters Limited. A stock market investor can buy Crown Lifters IPO shares by applying in IPO before Crown Lifters Limited shares get listed at the stock exchanges. An investor could invest in Crown Lifters IPO for short term listing gain or a long term.

  2. 2. How is Crown Lifters IPO?

    Read the Crown Lifters IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Crown Lifters IPO what should investors do?

    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 in the above answer.

  4. 4. Is Crown Lifters IPO good?

    Our recommendation for Crown Lifters IPO is to subscribe.

  5. 5. Is Crown Lifters IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Crown Lifters IPO.

  6. 6. When will Crown Lifters IPO allotment status?

    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.

  7. 7. When will Crown Lifters IPO list?

    The Crown Lifters IPO will list on Tuesday, September 27, 2016, at NSE SME.