Panache Digilife Ltd IPO Review – NSE SME Issue

Panache Digilife Ltd is coming up with their initial public offering and this is again an NSE SME issue. This post will try to figure out the Panache Digilife Ltd IPO Review and will try to find out ifs and buts of investing in this issue.

Issue Details:
Issue Date: April 11, 2017 – April 17, 2017
Issue Size: Rs. 13.50 crores
Offer Price: Rs. 75 per equity share
Minimum Bid Quantity: 1600 shares
Listing Exchange: NSE SME

Issue Objective:
1) For the need of working capital
2) To ensure general corporate expenses

About The Company:
Panache Digilife Ltd got incorporated in the year 2007. The company was previously known as Vardhaman Technology Ltd. The company is working in the field of technical service in relation to computer systems.

The company has five division:
1) PC division
2) Education division
3) Telematics division
4) AV division
5) Industrial design

Mr Amit Rambhia and Mr Nikhit Rambia are the 2 co-founders of the company. The official website of the company can be reached HERE.

Company Financial Data:
Panache Digilife Ltd IPO
In the initial years, the company has increased their profits in spite of no significant increase in the turnover. This was possible due to increasing the bottom line without a significant increase in the top line. However, in FY 2016 the company has managed to increase their top line and bottom line both. In the first nine months of the FY 2017 also the company has posted good financial data with a profit of Rs. 1.44 crores against a total turnover of 32.38 crores.

Panache Digilife Ltd IPO Review: So in the final note about the IPO is that the strong financial data favours applying for the issue while the P/E is on the higher side almost touching 25. We feel the IPO can give some listing gains but still, the issue price is looking expensive. Small investors can give it a miss while cash-rich investors can try on a risky traders point of view.

Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of on 2008. He follows Indian and world stock markets closely.

Categories: IPO Review

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