Brace Port Logistics Limited, a leading service-based logistics company in India, is launching its Initial Public Offering (IPO). The total issue size amounts to ₹24.40 crores, consisting of a Fresh Issue of 30.51 lakh shares. The subscription period will run from August 19, 2024, to August 21, 2024, with the shares expected to list on NSE SME on August 26, 2024.

The allotment is likely to be finalized on August 23, 2024, and can be checked on the registrar's website, Link Intime India Private Limited. Holani Consultants Private Limited is the book-running lead manager and also serves as the market maker for the IPO.

Brace Port Logistics has set the IPO price band at ₹76 to ₹80 per share, making it affordable for investors across different categories. The minimum lot size is 1,600 shares, requiring retail investors to invest a minimum of ₹128,000. High-Net-Worth Individuals (HNIs) will need to invest in a minimum of 2 lots (3,200 shares), which amounts to an investment of ₹256,000.

The Grey Market Premium (GMP) for Brace Port Logistics Limited IPO is projected to range between ₹50 and ₹55. This could translate into potential listing gains of around 60% to 70%. Although GMP indicates positive sentiment, it is important to remember that Grey Market transactions are unofficial and not recommended for decision-making.

On the first day of the subscription, Brace Port IPO showed strong investor interest, with a subscription rate of 14.29 times as of 12:01 PM on August 19, 2024. Investors can check the live subscription status on the NSE website for the most up-to-date information.

Brace Port Logistics Limited is a service-based logistics company, offering customized and technology-driven supply chain solutions. With over 50 trained professionals and two decades of industry expertise, the company delivers optimized solutions tailored to the needs of its clients.

The company is backed by the corporate promoter Skyways Air Services Private Limited, the flagship entity of Skyways Group. As a subsidiary of Skyways Air Services, Brace Port Logistics benefits from a wealth of experience in logistics and supply chain management.

The company’s leadership team includes seasoned professionals like: Yash Pal Sharma with 28 years of logistics experience. Tarun Sharma, who brings 16 years of expertise in ocean freight.  Sachin Arora with 22 years of industry experience. Rishi Trehan, contributing 9 years of logistics knowledge.

Brace Port Logistics has shown solid growth in revenue and profitability over the past few years. The company’s revenue increased from ₹5,419.57 lakhs in FY22 to ₹7,093.66 lakhs in FY23. As of FY24, the company posted revenues of ₹5,524.59 lakhs.

In terms of profitability, EBITDA grew from ₹430.02 lakhs in FY22 to ₹793.65 lakhs in FY23 and stands at ₹678.91 lakhs in FY24. Similarly, the Profit After Tax (PAT) increased from ₹322.39 lakhs in FY22 to ₹618.09 lakhs in FY23 and is currently ₹489.13 lakhs in FY24. These financial metrics reflect a steady upward trajectory in the company’s performance.

For the Brace Port Logistics IPO, the company has a pre-issue EPS of ₹5.93 and a post-issue EPS of ₹4.32. At the upper end of the price band, the pre-issue P/E ratio is 13.49x, while the post-issue P/E ratio is 18.51x, against an industry average of 25.50x.

The company's Return on Capital Employed (ROCE) for FY24 is a strong 47.05%, and its Return on Equity (ROE) stands at 43.19%. These figures suggest that the IPO is fairly priced, offering investors an attractive opportunity for both listing gains and long-term returns.

The proceeds from the IPO will primarily be used to: Fund working capital requirements with an allocation of ₹1,610.00 lakhs. Meet general corporate purposes.

These investments are expected to further strengthen Brace Port Logistics' operational capabilities and support future growth initiatives.

Considering the company's robust financial performance, reasonable valuation metrics, and the anticipated Grey Market Premium, Brace Port Logistics Limited IPO appears to be a solid opportunity for investors seeking listing gains or long-term growth. The company’s focus on providing customized, technology-driven logistics solutions positions it well in the growing logistics industry in India.

Potential investors should carefully assess their financial goals and risk appetite before making an investment decision.