Paradeep Parivahan Ltd, founded in 2000 under the leadership of Mr. Khalid Khan, has carved a niche in the cargo handling and port operations industry. The company provides services such as intra-port transportation, handling and transportation of port import cargo, shifting of bulk raw material, and hazardous cargo, railway siding operations, and more. Over the years, it has built a reputation for offering the best services in these domains.

Now, Paradeep Parivahan Ltd is gearing up to launch its Initial Public Offering (IPO) to raise capital for business expansion and working capital needs. The IPO, set to open on March 17, 2025, and close on March 19, 2025, will offer investors the chance to participate in a fresh issue of 45.78 lakh shares. The price band for the IPO is set at ₹93 to ₹98 per equity share, with the total offering amounting to ₹44.86 crores. The market capitalization of Paradeep Parivahan at the higher end of the price band (₹98 per share) will be ₹155.99 crores.

The IPO aims to meet the growing working capital requirements of the company and fund general corporate purposes. With a market maker involved and a focus on transparency, the company plans to ensure that the IPO is accessible to a wide range of investors.

In terms of the allotment process, the shares are expected to be finalized on March 21, 2025, with a listing date on the BSE SME on March 24, 2025. Retail investors can bid for a minimum of 1,200 shares (worth ₹1,17,600), while High-Net-Worth Individuals (HNIs) can invest in 2 lots, amounting to ₹2,35,200.

One of the key factors to note about the Paradeep Parivahan IPO is its Grey Market Premium (GMP), which is currently ₹0. This indicates that there may not be significant price movement in the grey market before the listing, suggesting cautious optimism for investors.

The company’s strong financial performance also adds credibility to its IPO. For the fiscal year 2024, the company posted a revenue of ₹13,794.19 lakh, with EBITDA of ₹1,311.19 lakh and a profit after tax of ₹517.61 lakh. This steady financial growth reflects a robust business model and sound management practices. The pre-issue earnings per share (EPS) stands at ₹14.15, while the post-issue EPS is projected at ₹9.44 for FY24. The company’s Price-to-Earnings (P/E) ratio is lower than the industry average of 25x, which suggests the IPO is fairly priced for investors.

The Paradeep Parivahan IPO review emphasizes that, despite the lack of Grey Market Premium, the company’s financial stability and its position in a growing sector make it a potentially solid long-term investment. However, some analysts have recommended avoiding the IPO for listing gains, given the flat GMP and the lack of significant trading volume in the grey market.

With anchor investors already committing ₹11.70 crores at ₹98 per share, the IPO has shown significant institutional interest, which further strengthens the company's prospects. The IPO’s success will depend on investor demand during the subscription period and the market conditions leading up to its listing.

For investors interested in checking their allotment status, they will be able to do so on the registrar’s website from March 21, 2025. The step-by-step process for checking allotment status includes entering the application number or PAN to get real-time updates.

In conclusion, Paradeep Parivahan Ltd’s IPO provides an opportunity to invest in a company with a strong market presence and solid financial performance. However, the relatively flat Grey Market Premium and the absence of major listing gains in the short term may prompt investors to consider holding for the long-term growth prospects. Whether you're an individual investor or a high-net-worth individual, the Paradeep Parivahan IPO offers a chance to participate in a growing sector, but with cautious optimism.

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

The Current active IPO is PDP Shipping & Projects.

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