PDP Shipping & Projects Limited, an International Freight Forwarding Company, has announced the launch of its Initial Public Offering (IPO) with a fixed price issue amounting to ₹ 12.65 Crore. The IPO consists of a fresh issue of 9.37 lakh shares at a price of ₹ 135 per equity share. The subscription period is from March 10, 2025, and will close on March 12, 2025. The allotment is expected to be finalized on March 13, 2025, with the listing on the BSE SME set for March 18, 2025.

The company’s market capitalization at the IPO price will stand at ₹ 40.15 Crore. The IPO offers retail investors the opportunity to invest a minimum of ₹ 1,35,000 for 1,000 shares, and High-Net-Worth Individuals (HNIs) must invest a minimum of ₹ 2,70,000 for 2,000 shares.

Objectives of the IPO

The net proceeds from the IPO will be utilized towards the following objectives:

1. ₹ 1,000 Lakhs for part funding long-term working capital requirements.
2. ₹ 79.95 Lakhs for general corporate purposes.

This will enable PDP Shipping & Projects to enhance its operations and improve the efficiency of its global transportation solutions, catering to integrated logistics and supply chain management challenges.

IPO Subscription Status and Grey Market Premium

As of 11:00 AM on March 10, 2025, the IPO subscription status shows that the issue has been subscribed 0.07 times on the first day of the subscription period. It is important to note that the Grey Market Premium (GMP) for the IPO is currently at ₹ 0, indicating a neutral market sentiment. This premium is subject to fluctuation based on demand and supply dynamics in the unorganized market, but it is not a reliable indicator of the IPO's listing performance.

IPO Allotment Status

The allotment date for the PDP Shipping & Projects IPO is March 13, 2025, and investors can check their allotment status through the Registrar's website by providing their application number, PAN, or DP Client ID. The process ensures that investors can stay updated on their allotment status and proceed with their investment accordingly.

Financials and Valuation

PDP Shipping & Projects has shown steady growth in its financial performance over the past few years, with revenues from operations for the period ending November 30, 2024, standing at ₹ 1,377.63 Lakhs. The EBITDA for the same period was ₹ 249.05 Lakhs, and the Profit After Tax (PAT) was ₹ 157.04 Lakhs. The company’s pre-issue earnings per share (EPS) is ₹ 11.36, and the post-issue EPS stands at ₹ 7.78 for FY24. The pre-issue price-to-earnings (P/E) ratio is 11.88x, while the post-issue P/E ratio is 17.35x, which is below the industry P/E ratio of 52x.

These metrics suggest that the IPO is fairly priced and could present a good investment opportunity for long-term investors.

Conclusion

While the Grey Market Premium (GMP) currently shows no significant gains, PDP Shipping & Projects has demonstrated steady financial growth and robust logistics expertise, positioning itself as a key player in the international shipping and logistics industry. Given the company’s strong fundamentals and fairly priced IPO, investors seeking long-term growth may find this IPO to be an attractive option. However, due to the neutral GMP, investors looking for listing gains may want to exercise caution.

In conclusion, PDP Shipping & Projects' IPO is a great option for retail investors and HNIs looking for long-term investments in a growing logistics sector.

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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