Lancer Container Lines Ltd IPO review (Subscribe)

Review By Dilip Davda on Mar 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.


Conclusion / Investment Strategy

Issue is priced justifiably and the sector is heading for bright prospects ahead. Long term investors may consider parking their funds in this IPO.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Mar 29, 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

Lancer Container IPO FAQs

  1. 1. Why Lancer Container IPO?

    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 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 IPO for short term listing gain or a long term.

  2. 2. How is Lancer Container IPO?

    Read the Lancer Container IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Lancer Container IPO what should investors do?

    Lancer Container IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Lancer Container IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Lancer Container IPO good?

    Our recommendation for Lancer Container IPO is to subscribe.

  5. 5. Is Lancer Container IPO worth Investing?

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

  6. 6. When will Lancer Container IPO allotment status?

    The Lancer Container IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Lancer Container IPO allotment status to check.

  7. 7. When will Lancer Container IPO list?

    The Lancer Container IPO will list on Wednesday, April 13, 2016, at BSE SME.








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