Paradeep Parivahan Ltd, founded in 2000 by Mr. Khalid Khan, is a leading player in cargo handling, port operations, and transportation services. The company has established itself as a prominent name in port services, with a focus on intra-port transportation, bulk raw material handling, and special attention cargo management. It also plays a key role in railway siding operations, earthwork, and crusher operations.

Now, Paradeep Parivahan is going public with an Initial Public Offering (IPO) to raise ₹ 44.86 Crores, entirely through a Fresh Issue of 45.78 Lakh shares. The subscription period for the IPO commenced on March 17, 2025, and will end on March 19, 2025. The shares are expected to be listed on the BSE SME on or about March 24, 2025.

Key IPO Details

• Price Band: ₹ 93 to ₹ 98 per share
• Market Capitalization: ₹ 155.99 Crores (at the upper price band of ₹ 98)
• Lot Size: 1,200 shares
• Minimum Investment: ₹ 1,17,600 for retail investors (1 lot), ₹ 2,35,200 for High-Net-Worth Individuals (HNIs) (2 lots)
• Subscription Status: As of 11:00 AM on March 19, 2025, the IPO was subscribed 0.63 times on its final day of the subscription period.

IPO Objectives

The net proceeds from the IPO will be used primarily for:

1. ₹ 35 Crores to meet working capital requirements.
2. General corporate purposes.

IPO Review and Financial Performance

Paradeep Parivahan has consistently grown its revenues over the years, with the FY 2024 revenue standing at ₹ 21,162.03 Lakhs, marking steady growth. The company’s EBITDA for the same period was ₹ 3,581.32 Lakhs, and it reported a Profit After Tax (PAT) of ₹ 1,502.16 Lakhs. The company’s financials indicate robust performance and growth prospects, with a Return on Capital Employed (ROCE) of 26.61% and Return on Equity (ROE) of 33.62% for FY 2024.

For FY24, the company’s pre-issue EPS is ₹ 14.15, and its post-issue EPS is ₹ 9.44, suggesting strong earnings growth. The P/E ratio at the upper price band of ₹ 98 is 6.93x, compared to the industry P/E ratio of 25x, indicating that the stock is fairly priced relative to its peers.

Grey Market Premium (GMP)

As of now, the Grey Market Premium (GMP) for Paradeep Parivahan Limited IPO is ₹ 0, suggesting no significant demand in the grey market. The GMP, which is based on unorganized trading, does not reflect the true value of the shares and is not recommended for price discovery before the official listing on the stock exchange.

Anchor Investor and Subscription

Paradeep Parivahan raised ₹ 11.70 Crores from Anchor Investors, with 11,94,000 equity shares allocated to them at the price of ₹ 98 per share. The Anchor Investors are allotted shares from the Qualified Institutional Buyers (QIBs) reservation portion.

Important Dates

• IPO Subscription Period: March 17 – March 19, 2025
• IPO Allotment Date: March 21, 2025
• Listing Date: March 24, 2025 (tentative)

How to Check Allotment Status

To check the Paradeep Parivahan IPO allotment status, follow these steps:

1. Visit the Registrar’s website for the IPO.
2. Select Paradeep Parivahan IPO from the dropdown.
3. Enter the application number, PAN, or DP Client ID.
4. Submit to view the allotment status.

Conclusion

While the Paradeep Parivahan IPO offers an opportunity to invest in a growing business in the logistics and port operations sector, the Grey Market Premium (GMP) is currently at ₹ 0, which suggests limited excitement in the market. Given the company’s steady financials and growth prospects, we recommend investors avoid the Paradeep Parivahan IPO for listing gains. However, it may still appeal to long-term investors looking to be part of a well-established company in the logistics space.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Grand Continental Hotels, Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited.

The Current active IPO are Paradeep Parivahan, Divine Hira Jewellers.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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