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Prime Customer Services BSE SME IPO review (Others)

Review By Dilip Davda on Mar 13, 2017

Prime Customer Services Ltd (PCSL) is a multi-services customer focused organization and offer value added services to a whole range of clients spread across various business segments. It is engaged in the business of providing services; namely, warehousing solutions, cold storage and ripening solutions, manpower solutions and packaging solutions. The company is also engaged in trading of perishable food items, mainly fruits and vegetables in the domestic as well as export markets. PCSL’s customers are primarily located in the western India, majorly Gujarat and Maharashtra.

The company has started exporting fruits and vegetables in the year 2015-16, currently to U.A.E. Now the Company has reached a stage where it has entered into tie-up with large corporate from procurement of fruits and vegetables and operate a warehouse facility, cold storage & ripening chambers of approximately 10,180 sq. ft. totally and managing clients’ warehouse and cold storage facilities of approximately 2,55,700 sq. ft. currently.

To part finance its long term capital and general corpus fund needs, the company is coming out with a maiden IPO of 1214000 equity shares of Rs. 10 each at a fixed price of Rs. 60 per share to mobilize Rs. 7.28 crore. Issue opens for subscription on 20.03.17 and will close on 23.03.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Aryaman Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. From MoA in 2007 till March 2008 it issued equity at par. Thereafter, it raised further equity at a price range of Rs. 25 to Rs. 40 per share during 2008-2014. It has also issued bonus shares in May 2016 in the ratio of 1 for 1 after forfeiting 200000 shares in the month of December 2015. Its current paid up equity capital of Rs. 3.04 crore will stand enhanced to Rs. 3.49 crore post issue.

On performance front, the company has posted turnover/net profits of Rs. 10.69 cr. / Rs. 0.06 cr. (FY13), Rs. 17.48 cr. / Rs. 0.10 cr. (FY14), Rs. 19.62 cr. / Rs. 0.08 cr. (FY15) and Rs. 21.05 cr. / Rs. 0.27 cr. (FY16). For the first half of the current fiscal it has earned net profit of Rs. 0.25 crore on a turnover of Rs. 13.92 cr. If we annualize latest earnings and attribute on fully diluted equity post issue, then asking price is at a P/E of 41 plus and a P/BV of over 4.5 making it a costly issue. As per prospectus, the company has no listed peers to compare with.

On merchant banker’s front, this is the 14th mandate in last three years and past mandates have shown mixed trends.

Conclusion: Considering aggressive pricing, only cash surplus risk savvy investors may consider investment for long term.


Conclusion / Investment Strategy

Considering aggressive pricing, only cash surplus risk savvy investors may consider investment for long term.

Reviewer not sure about the issue.

Review By Dilip Davda on Mar 13, 2017

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 prior to making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well informed investors to participate is such offers. With crazy recent listings, SME IPOs have started drawing attention of investors across the board. However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on information available as on date coupled with market perceptions. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

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

Prime Customer Services IPO FAQs

  1. 1. Why Prime Customer Services IPO?

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

  2. 2. How is Prime Customer Services IPO?

    Read the Prime Customer Services IPO recommendations by the leading analyst and leading stock brokers.

    Dilip Davda - Other

  3. 3. Prime Customer Services IPO what should investors do?

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

  4. 4. Is Prime Customer Services IPO good?

    Sorry, we didn't rate the Prime Customer Services IPO.

  5. 5. Is Prime Customer Services IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the Prime Customer Services IPO.

  6. 6. When will Prime Customer Services IPO allotment status?

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

  7. 7. When will Prime Customer Services IPO list?

    The Prime Customer Services IPO will list on Friday, March 31, 2017, at BSE SME.

The Prime Customer Services IPO Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered IPO Analysts tells you if Prime Customer Services IPO worth investing. The Prime Customer Services IPO Note sets the IPO expectations in systematic way which tells you if Prime Customer Services IPO good to buy (good or bad / yes or no). The IPO Forecast tells you weather to invest in Prime Customer Services IPO by providing IPO recommendations i.e. subscribe, avoid and neutral.


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