Paradeep Parivahan shares drop 24% after weak BSE SME listing, investors hit

Paradeep Parivahan shares list at 20% discount on BSE SME, investors face losses

Team Finance Saathi

24/Mar/2025

What's covered under the Article:

Paradeep Parivahan shares listed at a 20% discount on BSE SME, dropping 24% to Rs 74.48.
Investors suffered a loss of Rs 23,520 per lot as the IPO was priced at Rs 78.40 per share.
The IPO aimed to raise funds for working capital needs and corporate purposes, with a subscription of 1.78 times.

Paradeep Parivahan made its debut on the BSE SME platform on Monday, opening at a 20% discount to its issue price. The stock further declined, hitting a low of Rs 74.48 per share, marking a 24% drop from its listing price. This decline resulted in a significant loss of Rs 23,520 per lot for investors who subscribed to the IPO at an issue price of Rs 78.40 apiece.

Weak Market Debut for Paradeep Parivahan

The Paradeep Parivahan IPO was priced in a band of Rs 93 - 98 per share, but the listing at a discount disappointed investors. The stock’s sharp decline raised concerns about the valuation and market sentiment surrounding SME IPOs. Despite receiving a subscription of 1.78 times, the stock failed to sustain investor interest, leading to a major post-listing drop.

Financial Impact on Investors

Investors who had subscribed to the IPO in lots of 1,200 shares suffered heavy losses. The issue was expected to generate positive momentum due to the company’s operational presence in the logistics sector, but the listing failed to meet expectations.

About Paradeep Parivahan

Paradeep Parivahan, based in Paradip Port, Odisha, is a third-party logistics service provider, offering end-to-end supply chain solutions. The company specializes in multimodal transport operations, including container, sea, and road transportation. Additionally, it provides warehousing, customs clearance services, and project cargo handling.

Fund Utilization and Business Prospects

The IPO proceeds were meant for working capital requirements and general corporate purposes. Despite its presence in the growing logistics industry, the weak listing indicates concerns regarding valuation and investor sentiment.

Market Reactions and Stock Movement

The weak listing of Paradeep Parivahan is part of a trend where SME IPOs have faced volatile post-listing movements. Investors are advised to analyze company fundamentals and market conditions before investing in SME IPOs.

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