Pranik Logistics Limited is gearing up for its Initial Public Offering (IPO) from October 10 to October 14, 2024. As a prominent player in the logistics sector in India, this IPO has drawn attention from potential investors. In this blog, we’ll cover the key details surrounding the Pranik Logistics IPO, including subscription information, business overview, financial highlights, and more.
Pranik Logistics IPO Details
Here’s a quick overview of the essential details of the Pranik Logistics IPO:
| Detail | Information |
|---|---|
| Issue Size | Approximately ₹22.47 crores |
| Price Band | ₹73 to ₹77 per equity share |
| Face Value | ₹10 per share |
| Lot Size | 1,600 shares (Minimum investment: ₹123,200) |
| Type of Issue | Book Built Issue |
| Listing Exchange | NSE SME |
The IPO offers a unique opportunity for investors to become part of a growing logistics company with a solid operational foundation.
Subscription Information
The subscription period for the Pranik Logistics IPO runs from October 10 to October 14, 2024. Here’s a breakdown of the investor categories and their respective allocations:
| Investor Category | Allocation |
|---|---|
| Retail Investors | Up to 35% |
| Qualified Institutional Buyers (QIB) | Up to 50% |
| Non-Institutional Investors (NII) | Up to 15% |
The minimum investment for retail investors is substantial, given the lot size of 1,600 shares. This translates to a minimum investment of ₹123,200, making it a serious consideration for potential backers.
Grey Market Premium (GMP) Today
As of today, October 15, 2024, the Grey Market Premium (GMP) for the Pranik Logistics IPO is reported to be ₹15. This indicates a lack of trading activity or established demand in the grey market ahead of the IPO launch. While this might suggest some uncertainty, it is essential for investors to focus on the company’s fundamentals rather than short-term market movements.
Business Overview
Pranik Logistics has built a reputation as a carrying and forwarding agent, providing integrated logistics solutions across India. Here’s a closer look at what the company offers:
Core Services
| Service | Description |
|---|---|
| Transportation | Efficient movement of goods nationwide |
| Warehousing | 30 strategically located warehouses |
| Material Handling | Expert cargo handling for safety and efficiency |
| Freight Forwarding | Streamlined processes for smooth shipping |
The company serves a diverse range of sectors, including automotive, retail, and pharmaceuticals. With over 80 commercial vehicles and a dedicated workforce, Pranik Logistics aims to cater to various logistics needs effectively.
Financials
The financial health of Pranik Logistics looks promising, with significant growth in recent years. Here’s a snapshot of their financial performance:
Financial Highlights
| Metric | FY 2023 | FY 2024 | Q1 FY 2025 |
|---|---|---|---|
| Revenue | ₹6,052.70 lakhs | ₹6,770.08 lakhs | ₹2,230.90 lakhs |
| Profit After Tax (PAT) | ₹93.23 lakhs | ₹406.56 lakhs | ₹108.90 lakhs |
| Earnings Per Share (EPS) | ₹1.73 | ₹7.54 | N/A |
| EBITDA | ₹345.13 lakhs | ₹934.19 lakhs | N/A |
Key Financial Ratios
| Ratio | Value |
|---|---|
| Debt/Equity Ratio | 1.56 |
| Return on Equity (ROE) | 35.56% |
| Return on Capital Employed (ROCE) | 54.14% |
These figures indicate a strong trajectory for the company, particularly in profitability and efficient use of capital. The remarkable growth in PAT and EPS underlines the company’s commitment to enhancing shareholder value.
IPO Review
The Pranik Logistics IPO presents a compelling investment opportunity, especially considering the strong fundamentals and growth potential of the logistics sector in India. Here’s a summary of the key points:
Strengths
- Significant Revenue Growth: The company reported an 11% increase in revenue year-over-year.
- Strong Management Team: Experienced leaders with extensive industry knowledge.
- Improved Financial Ratios: The decreasing debt-equity ratio suggests sound financial management.
Weaknesses
- Competitive Landscape: The logistics sector is crowded with established players.
- Dependency on External Vehicles: Reliance on leasing can be a concern.
- Vulnerability to Fuel Prices: Fluctuations can impact operational costs.
Overall, the Pranik Logistics IPO appears promising for investors willing to explore the logistics sector.
Allotment Status
The allotment status for the Pranik Logistics IPO will be available on October 15, 2024. Here’s how the allotment structure is organized:
| Category | Allocation |
|---|---|
| Qualified Institutional Buyers (QIB) | 50% |
| Non-Institutional Investors (NII) | 15% |
| Retail Investors (RII) | 35% |
| Market Maker Portion | 1,61,600 shares reserved |
How to Check Allotment Status
- Visit the registrar’s website, Maashitla Securities Private Limited.
- Look for the ‘IPO Allotment Status’ option.
- Enter your PAN, application number, or Demat account number.
- Click Submit to view your allotment status.
Investors can also check their allotment status through their brokers if that service is available.
Frequently Asked Questions (FAQs)
1. What are the key dates for the Pranik Logistics IPO?
| Event | Date |
|---|---|
| Opening Date | October 10, 2024 |
| Closing Date | October 14, 2024 |
| Basis of Allotment | October 15, 2024 |
| Refunds Initiation | October 16, 2024 |
| Shares Credit to Demat Accounts | October 16, 2024 |
| Listing Date | October 17, 2024 |
2. What is the price band for the IPO?
The price band for the Pranik Logistics IPO is set at ₹73 to ₹77 per share.
3. What is the issue size of the IPO?
The total issue size is approximately ₹22.47 crores, consisting entirely of a fresh issue of shares.
4. What is the lot size for the IPO?
The minimum lot size is 1,600 shares, which means the minimum investment is about ₹123,200.
5. How can I apply for the Pranik Logistics IPO?
To apply:
- Open a Demat and Trading Account with a brokerage firm.
- Access the IPO section on their platform.
- Place your bid for the desired number of shares within the price band.
- Confirm your details and submit your application.
6. What will be done with the funds raised from the IPO?
The proceeds will be allocated as follows:
- ₹8 crores for technology and ERP investments
- ₹2.2 crores for warehouse setup
- ₹12 crores for working capital
- Remaining funds for general corporate purposes
Conclusion
In conclusion, the Pranik Logistics IPO offers a unique opportunity to invest in a rapidly growing logistics company in India. With its solid financial performance, experienced management, and a comprehensive service offering, it could be a worthwhile addition to an investment portfolio. However, potential investors should carefully consider the competitive landscape and market dynamics before making their decisions.
As we approach the IPO opening date, keep an eye on updates and prepare to take advantage of this opportunity. Happy investing!
Thank you for reading and staying informed about the Pranik Logistics IPO!
