CKP Leisure Limited is engaged in the business of leisure market in India comprising of nightclubs, fine dining restaurants, banquet halls, etc. It is Mumbai based company. This company operates SIRKUS, one of the well known night club’s in Mumbai in the iconic Hotel Sahara Star. CKP Leisure is soon going to be listed on the Indian stock exchanges through their initial public offering. So, let me quickly check the draft red herring prospectus and consider the issue date and issue price to post the CKP Leisure Limited IPO Review.
About CKP Leisure Limited IPO :
- IPO Opens on – February 21, 2018.
- IPO Closes on – February 23, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 30 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Retail Allocation – 50%
- Market Lot – 4000 Shares.
- Minimum Order Quantity – 4000 Shares.
- Issue Size – 3,848,000 Equity Shares of Rs 10 aggregating up to Rs 11.54 Cr.
- Fresh Issue – 1,248,000 Equity Shares of Rs 10 aggregating up to Rs 3.74 Cr.
- Offer for Sale – 2,600,000 Equity Shares of Rs 10 aggregating up to Rs 7.80 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- To set up a banquet hall at Nashik, Maharasthra.
- General corporate purpose.
- To meet the IPO expenses.
This company will not receive any proceeds of the offer for sale by the promoter selling shareholders.
The Fresh Issue –
(a) Setting up of a Banquet Hall at Nashik.
(b) General Corporate Purposes.
(c) Offer related expense.
About The Company –
- CKP Leisure Limited is incorporated in 2013.
- This company focuses on providing its guests a premium night club experience with quality food and beverages and service in a modern ambience.
- SIRKUS, the high-end nightclub was launched in 2016 and which is open on Wednesday, Thursday, Friday and Saturday nights from 10:00 p.m. to close.
- The nightclub of this company is built in 5,000 square feet with a dance floor, high-energy lighting, VIP bottle service and some of the best beats and entertainment.
- The club of this company requires its guests to follow a dress code which adds on to the glamour and nightlife experience.
- CKP Leisure Limited is made an investment in a partnership firm named M/s. Athena Restaurant and Bar, and took over the operations and management of a restaurant and a night club named ‘Saizen’ and ‘Club Athena’ at Colaba in Mumbai in 2015.
- The name of these Restaurant later changed to ‘जा:pani’ (a Japanese cuisine restaurant) and ‘Club Alibii’.
- CKP Leisure Limited has recently acquired 14,542 sq. feet of property on lease at Pinnacle mall in Nashik where in company is planning to setup and operate a banquet hall having a guest capacity of approx 500 persons.
Promoters of the company :
- Mr. Prafulla Bhat, is the promoter of this company.
- Mr. Chanakya Dhanda, is the promoter of this company.
CKP Leisure Limited IPO Review: In the DRH we got very little financial data prior to FY 2016. However, on FY 2016 and FY 2017, the company has posted decent profits. The business model is attractive and likely to sustain while people getting more dependent on a nightlife with decent cash in hand to meet this need. However, the issue price of Rs. 30 looks on the higher side considering the current price by the book value of 1.35. Hence, our CKP Leisure Limited IPO Review has a NEUTRAL view on this issue. Invest only for the long term if you can take a moderate risk and have surplus cash in hand.