Paradeep Parivahan Ltd, founded in 2000 under the leadership of Mr. Khalid Khan, is focused on providing services related to cargo handling, port operations, intra-port transportation, and handling hazardous cargo, among other activities. The company operates in critical infrastructure sectors like railway siding operations, earth work, and special attention cargo.

Paradeep Parivahan is launching its IPO with an offer size of ₹ 44.86 crores, consisting entirely of a fresh issue of 45.78 lakh shares. The price band is set at ₹ 93 to ₹ 98 per equity share, and the lot size for the IPO is 1,200 shares. The subscription period for the IPO runs from March 17, 2025, to March 19, 2025, with the allotment expected by March 21, 2025, and listing on the BSE SME slated for March 24, 2025.

Financial Overview

Paradeep Parivahan has shown steady revenue growth, with revenues for the year ending September 30, 2024 at ₹ 13,794.19 lakh, up from ₹ 18,869.10 lakh in FY 2022. The EBITDA for the same period was ₹ 1,311.19 lakh, reflecting a steady operational performance. Profit after tax (PAT) for FY 2024 stood at ₹ 517.61 lakh, with growth in profitability over the past few years.

Key Metrics

• The market capitalization of Paradeep Parivahan at the upper price band of ₹ 98 per share will be ₹ 155.99 crores.
• Pre-issue price-to-earnings (P/E) ratio is 6.93x, and the post-issue P/E ratio is 10.38x, which is significantly lower than the industry P/E ratio of 25x.
• The company's Return on Capital Employed (ROCE) for FY 2024 is 26.61%, and Return on Equity (ROE) stands at 33.62%.

IPO Objectives

The net proceeds from the IPO will be utilized for:

1. ₹ 3,500.00 lakh to meet the company's working capital requirements.
2. General corporate purposes.

IPO Subscription and Anchor Investors

• The IPO was subscribed 1.64 times on its final day of subscription (March 19, 2025).
• ₹ 11.70 crores has been raised from anchor investors at a price of ₹ 98 per share, with the company allocating 11,94,000 equity shares to these investors.

Grey Market Premium (GMP)

The grey market premium (GMP) for the Paradeep Parivahan IPO stands at ₹ 0, indicating no expected listing gains based on the current market conditions.

How to Check Allotment Status

The allotment date for the Paradeep Parivahan IPO is March 21, 2025. To check allotment status:

1. Visit the IPO allotment status page.
2. Select Paradeep Parivahan Limited IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID and submit to view your allotment status.

IPO Review

Despite Paradeep Parivahan’s solid financials and relatively low P/E ratio, the Grey Market Premium (GMP) of ₹ 0 suggests no significant listing gains. Given the fair pricing and stable growth, investors are advised to avoid this IPO for short-term listing gains, though it may be considered for long-term investment depending on strategic goals and market conditions.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited,Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

The Current active IPO are Grand Continental Hotels.

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