Party Cruisers IPO

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Party Cruisers Limited came (PCL) into existence in 1994. Since incorporation, the Company specializes in Wedding Management and Events Management Business wherein they offer all clients a complete variety of wedding and event facilities. Our Wedding Management Services range from pre-wedding, during wedding and post wedding events like in-house designing, designation wedding event décor etc. The Event Services range from planning & marketing to production and décor etc.

As a Wedding and Events Management, they work on the initial conception (pre-event publicity, venue research & booking, transport), to turnkey production (set-up, on-site management, staffing, stage designing, entertainment), to post-event support (final material distribution, delegate attendance assessment, post-event report) – they take care of everything.

The team consist of 30 employee’s currently operates out from its Mumbai Office Only. However, since the Company aims to be the ‘First and Only Choice’ for the existing and prospective clients who are looking for a unique and one-of-a-kind event to be organized for themselves, they have adopted the franchisee model to expand the business Pan India.

Services of the Party Cruiser:

a) WEDDING MANAGEMENT SERVICES

b) VIVAAH

c) VOWS-AWAY AND BEYOND

d) EVENTMANAGEMENT SERVICES

Objects of the Party Cruisers IPO:

Party Cruisers is raising 7.75 Crores in the IPO for the following purpose. a) To expand business through strategic investment. b) To meet additional working capital requirement. c) To meet general corporate purposes. d) To meet issue expenditures.

Party Cruisers IPO Details:

Open Date: Feb 22 2021
Close Date: Feb 25 2021
Total Shares: 1,520,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 7.75 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 08 2021

Promoters And Management:

The company is promoted by Mr. Zuzer H. Lucknowala and Mrs. Rachana Z. Lucknowala. The individual promoters manage and control the major affairs of the business operations. Through their combined 49 plus years of experience, industry knowledge and understanding, the company has a competitive advantage over the competitors which enables them to expand the geographical and customer presence in existing as well as target markets, while exploring new growth avenues.

Financials of Party Cruisers IPO:

Particulars(cr) 6MFY21 Mar-20 Mar-19 Mar-18
Sales 1.7 15 18 15
Purchase of materials 0.28 4 4 6
Changes in Inventories 0.18 -1 -0.08 0.06
Employee Benefit Expenses 0.24 2.8 2.5 2
Other expenses 0.57 8 9 5
Operating Profit 0.43 1.2 2.58 1.94
OPM % 25% 8% 14% 13%
Other Income 0.12 0.7 0.5 0.5
Interest 0.03 0.05 0.06 0.06
Depreciation 0.13 0.24 0.23 0.27
Profit before tax 0.26 1.62 2.8 2
Net Profit 0.22 1 1.9 1.5
No. of shares 0.56 0.56 0.56 0.56
EPS in Rs 0.39 1.79 3.39 2.68

Comparison With Peers:

As per RHP, the company has shown Touchwood Entertainment as its listed peers, which is currently trading at P/E of 52 based on FY20 financials.

Recommendation on Party Cruisers IPO:

Review and Recommendation of InvestorZone are 3/10 1. The business of wedding management business is severally affected by lockdown and same can been seen in the financials of the company. 2. There is no moat in the business. 3. Average EPS of last 3 years is 2.62 and asking P/E is 20x based on this average EPS. However, for FY20-21, the annualized EPS is just 0.78 and P/E is 64x. 4. For raising 7.75 Crores from the IPO, company is paying 56 Lakh to lead manager which is huge.

Lead Manager of Party Cruisers IPO:

  1. First Overseas Capital Limited

Registrar of Party Cruisers IPO:

  1. Karvy Computershare Private Limited

Discussion on Party Cruisers IPO: