Paradeep Parivahan Limited, founded in 2000 by Mr. Khalid Khan, is a prominent player in the cargo handling, port operations, and transportation sector. The company provides specialized services such as intra-port transportation, handling of hazardous cargo, and railway siding operations. It is now planning to raise funds through its Initial Public Offering (IPO).

The Paradeep Parivahan IPO will open for subscription on March 17, 2025, and close on March 19, 2025. The IPO consists entirely of a Fresh Issue amounting to ₹ 44.86 Crores, with 45.78 lakh shares being offered at a price band of ₹ 93 to ₹ 98 per equity share. The market capitalization of Paradeep Parivahan at the upper end of the price band will be ₹ 155.99 Crores. Investors can subscribe for a minimum of 1,200 shares, which would cost ₹ 1,17,600, while High Net-Worth Individuals (HNIs) will need to invest a minimum of 2,400 shares (₹ 2,35,200).

The lot size is 1,200 shares, and retail investors are required to invest a minimum of ₹ 1,17,600, while HNIs need to subscribe for 2 lots. The Grey Market Premium (GMP) for this IPO is currently reported to be ₹ 0, indicating no premium in the unregulated market. This is a critical factor for potential investors to consider, as the absence of a GMP does not suggest any significant short-term excitement surrounding the listing.

The IPO’s allotment date is expected on March 21, 2025, and the listing date is tentatively set for March 24, 2025 on the BSE SME platform. Investors can check their allotment status by entering their application number, PAN, or DP Client ID on the registrar's website.

The company's financial performance shows consistent growth. For the period ending September 30, 2024, Paradeep Parivahan reported revenues of ₹ 13,794.19 Lakhs, with a Profit after Tax (PAT) of ₹ 517.61 Lakhs. The EBITDA for the same period stood at ₹ 1,311.19 Lakhs, indicating a steady financial trajectory. Over the past few years, the company has shown robust growth in revenues and profitability, positioning it as a reliable service provider in the logistics and port operations industry.

The pre-issue earnings per share (EPS) for FY24 is ₹ 14.15, while the post-issue EPS is expected to be ₹ 9.44. The P/E ratio is 6.93x pre-issue and 10.38x post-issue, which is below the industry average of 25x. The company’s Return on Capital Employed (ROCE) stands at 26.61%, and the Return on Equity (ROE) is 33.62%, indicating strong performance metrics.

However, despite strong financials, the Grey Market Premium (GMP) of ₹ 0 points to no listing gains expected from this IPO. Investors should keep in mind that the GMP reflects demand and supply in the unregulated market and is not a reliable predictor of the listing price. As such, the absence of a GMP suggests that the IPO might not generate significant short-term returns.

The objectives of the IPO are primarily to raise funds for working capital requirements (₹ 3,500 Lakhs) and general corporate purposes. These funds will help the company continue its operations and expand its capacity to handle complex logistics and transportation projects across ports and railways.

Despite the 0 GMP and the moderate valuation, Paradeep Parivahan’s steady financial performance and industry leadership in cargo handling make this IPO a viable option for long-term investors. The company’s focus on specialized services in the transportation and port operations space positions it well for growth, especially as demand for logistics services is expected to rise in the coming years.

In conclusion, the Paradeep Parivahan IPO is fairly priced based on its financials but lacks strong short-term excitement, as indicated by the zero GMP. Investors who are looking for long-term growth in the logistics and transportation sector may find this IPO worth considering, but those seeking immediate listing gains may want to proceed with caution.

The IPO allotment guide provides an easy way for investors to check their subscription status, and the Grey Market Premium indicates that the listing may not offer significant short-term gains. As always, thorough research and careful consideration of the company’s growth prospects and financial health are critical before making any investment decision.

The Upcoming IPOs in this week and coming weeks are Super Iron Foundry, Paradeep Parivahan, Divine Hira Jewellers.

The Current active IPO is PDP Shipping & Projects.

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