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Continuing the momentum of IPO’s being launched in India, Party Cruisers Limited is coming out with an IPO on February 22, 2021. Here is all you need to know about the issue.

Please note: You will not be able to invest in this IPO on Groww via UPI. You can invest in the IPO via the ASBA  facility– available via the net banking interface of your bank account. Almost all banks offer this facility.

Party Cruisers Limited IPO Details

IPO Date February 22, 2021, to February 25, 2021
Issue Type Book Built Issue IPO
Issue Size 1,520,000 Equity Shares of Rs.10 totaling up to Rs.7.75 Crore
Face Value Rs.10 per equity share
IPO Price Rs.51  per equity share
Market Lot 2000 Shares
Min Order Quantity 2000 Shares
Listing At BSE, NSE

Party Cruisers Limited IPO Tentative Timetable

Bid/Offer Launch date February 22, 2021
Bid/Offer Last date February 25, 2021
Basis of Allotment finalization date March 02, 2021
Initiation of Refunds March 03, 2021
Credit of Shares to Demat Account March 04, 2021
IPO Shares Listing Date March 05, 2021

About the Company – Party Cruisers Limited 

Party Cruisers Limited was established in 1994 under the name Party Cruisers Private Limited. The company specializes in wedding management and events management.

Under the wedding management services, the company offers the management of pre-wedding, during-wedding, and post-wedding events. These include in-house designing, destination wedding, event décor, etc. Its event services offer planning and marketing, production and décor, etc. Overall, the company works on:

  • Event set-up, on-site management, staffing, stage design, entertainment, etc.
  • Turnkey production including the set-up, on-site management, staffing, stage design, entertainment, etc.
  • Post-event support including final material distribution, delegate attendance assessment, post-event report, etc.

The company works with a team of 30 employees, operating out of its Mumbai office. However, it has also adopted a franchise model to expand its business across India. 

1. Objects of the Offer

Party Cruisers Limited proposes to utilize the net proceeds from the fresh issue towards:

  1. Expansion of the business through strategic investment
  2. Additional Working Capital
  3. General Corporate Expenses

2. Strengths of Party Cruisers Limited 

  • Party Cruisers are well-known through their brands ‘Vivaah’ and ‘Vows – Away and Beyond’, in the Wedding Management industry.
  • A symbiotic relationship with eight franchisee partners across India.
  • Being in the wedding and event management Industry for the last 25 years, the company has established a strong and long-term business relationship with its key suppliers from whom it regularly purchases materials. This ensures timely delivery of materials, the supply of quality and superior finished materials, and specialized services.
  • Party Cruisers has an experienced and talented in-house design team equipped to handle events, both intimate and grand in scope.
  • It has diversified business operations and revenue base mitigating the risk of revenue concentration.
  • The promoters of the company have been in the wedding/event management business for around five decades.

3. Risk Factors

  • The success of Party Cruisers Limited depends largely on its senior management and its ability to attract and retain key personnel. The loss of any such personnel could impair its ability to continue to manage and expand the business efficiently.
  • Party Cruisers doesn’t own the premises where its registered and corporate office is situated, and a Leave & License Agreement has been executed for the same. Any termination or dispute in relation to this lease/rental agreement may have an adverse effect on its business operations and results thereof.
  • The company’s intellectual property rights may be infringed upon or it may infringe the intellectual property rights of third parties. This may subject the company to claims or actions and its business, reputation, financial condition, and results of operations may be adversely affected.
  • Party Cruisers has entered into franchise agreements to expand its business. Any termination or dispute in relation to these agreements may have an adverse effect on its business operations and results thereof.
  • Wedding planning and event businesses are seasonal or cyclic in nature and expose the company to various risks which can consequently affect its business, if it fails in dealing with the same.
  • Party Cruisers operates in a highly competitive and fragmented industry with low barriers to entry and may be unable to compete successfully against existing or new competitors, particularly in the unorganized segment.
  • Changes in trends may render its current services obsolete or require it to make substantial capital investments and hiring of people with required new skills. 
  • The company depends on skilled personnel and if it is unable to recruit and retain skilled personnel, its ability to operate or grow its business could be affected.
  • Any deficiency in services could make the company liable for client claims, which in turn could affect its results of operations.
  • The company’s business requires a significant amount of working capital. If it is unable to generate sufficient cash flows to allow it to make required payments on its debt or fund working capital requirements, there may be an adverse effect on its results of operations.
  • The company depends upon key suppliers for supplying the products and any disruption in their supply could disrupt its business and adversely affect its financial results.
  • A significant portion of the company’s revenues is dependent upon few customers. The loss of any one or more of its major customers would have a material adverse effect on its business operations and profitability.

4. Overview of Party Cruisers Limited’s Financials

30-Sep-20 31-Mar-20 31-Mar-19 31-Mar-18
Total Assets 11.69 12.28 11.94 10.14
Total Income 17.15 15.89 18.88 15.36
Total Expenses 1.45 14.26 16.05 13.29
Profit After Tax 0.23 1.00 1.93 1.48

All amounts in INR Crore

5. Promoters of Party Cruisers Limited IPO

  1. Mr. Zuzer Hatim Lucknowala
  2. Mrs. Rachana Zuzer Lucknowala

FAQs

Q1. What is the Party Cruisers IPO?

Party Cruisers IPO is a Main Board IPO for the issue of 1,520,000 equity shares having the face value of Rs.10 totaling up to Rs.7.75 crores. The registrar for the IPO is KFintech Private Limited and the shares will be listed on BSE and NSE.

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Q2. What are the open and close dates of Party Cruisers IPO?

Party Cruisers Limited IPO opens on February 22, 2021, and closes on February 25, 2021.

Q3. What are the lot size and minimum order quantity of Party Cruisers IPO?

The lot size of Part Cruisers IPO is 2000 shares and the minimum order quantity is 2000 shares.

Q4. When is the allotment of Party Cruisers IPO?

 The basis of allotment will be finalized on March 02, 2021, and the allotted shares will be credited to the investor’s demat accounts by March 04, 2021.

Q5. What is Party Cruisers IPO listing date?

The listing date of Party Cruisers IPO is yet to be announced. However, the tentative date is March 05, 2021.

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