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Pansari Developers NSE SME IPO review (Apply)

Review By Dilip Davda on Sep 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.


Conclusion / Investment Strategy

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.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 28, 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

Pansari Developers IPO FAQs

  1. 1. Why Pansari Developers IPO?

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

  2. 2. How is Pansari Developers IPO?

    Read the Pansari Developers IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Pansari Developers IPO what should investors do?

    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 in the above answer.

  4. 4. Is Pansari Developers IPO good?

    Our recommendation for Pansari Developers IPO is to subscribe.

  5. 5. Is Pansari Developers IPO worth Investing?

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

  6. 6. When will Pansari Developers IPO allotment status?

    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.

  7. 7. When will Pansari Developers IPO list?

    The Pansari Developers IPO will list on Tuesday, October 18, 2016, at NSE SME.