Pranik Logistics, a leading logistics service provider in India, is making its market debut with a ₹22.47 Crore book-built IPO. This IPO includes a fresh issue of 29.18 lakh equity shares, offering investors an exciting opportunity to participate in the growing logistics industry in India. The subscription period for the Pranik Logistics IPO opens on October 10, 2024, and will close on October 14, 2024. The company’s shares will be listed on the NSE SME platform, with an expected listing date of October 17, 2024.

IPO Price Band and Minimum Investment Requirements

The Pranik Logistics IPO price band has been set between ₹73 and ₹77 per share, making it accessible to a wide range of investors. For retail investors, the minimum lot size is 1,600 shares, translating into a minimum investment of ₹1,23,200. For High-Net-Worth Individuals (HNIs), the minimum investment is set at two lots (3,200 shares), requiring a total outlay of ₹2,46,400.

NARNOLIA FINANCIAL SERVICES LIMITED is the book-running lead manager, and MAASHITLA SECURITIES PRIVATE LIMITED is the registrar for this IPO. Prabhat Financial Services Limited will act as the Market Maker for the Pranik Logistics IPO, ensuring liquidity in the stock post-listing.

Live Subscription Status and Anchor Investors

As of October 11, 2024, the Pranik Logistics IPO subscription status shows an impressive subscription of 2.90 times on its second day. This reflects growing investor interest, particularly among retail and institutional investors.

The company has raised ₹6.32 crore from Anchor Investors at the upper price band of ₹77 per share, allocating 8,20,800 shares. Notably, Anchor Investors participate from the Qualified Institutional Buyers (QIBs) reservation portion, further reinforcing confidence in the company’s growth potential.

IPO Grey Market Premium and Price Discovery

The Grey Market Premium (GMP) for the Pranik Logistics IPO stands at ₹0, indicating a neutral stance from the unorganized market. Investors are advised to refrain from basing their decisions solely on GMP figures, as it fluctuates based on demand-supply dynamics in unofficial markets. The actual price discovery will occur on the listing day, allowing investors to make informed decisions based on market performance.

IPO Allotment Date and How to Check Status

The allotment for Pranik Logistics IPO will be finalized on October 15, 2024. Investors can check their allotment status online by following these steps:

   ▪ Visit the IPO allotment status page on the registrar’s website.

   ▪ Select Pranik Logistics Limited IPO from the list of active IPOs.

   ▪ Enter your application number, PAN, or DP Client ID.

   ▪ Submit the details to view your allotment status.

Once the status is confirmed, investors can prepare for the listing day and future trading activity.

Financial Performance of Pranik Logistics

Pranik Logistics has demonstrated steady financial growth in recent years. In Fiscal 2024, the company reported revenue of ₹6,770.08 lakhs, a significant increase from ₹6,090.62 lakhs in Fiscal 2023 and ₹3,360.96 lakhs in Fiscal 2022. Similarly, EBITDA has seen notable growth, with ₹934.19 lakhs in FY24 compared to ₹345.13 lakhs in FY23 and ₹97.61 lakhs in FY22.

The company’s Profit After Tax (PAT) for Fiscal 2024 was ₹406.56 lakhs, up from ₹93.23 lakhs in FY23 and ₹31.54 lakhs in FY22, showcasing consistent improvement in profitability.

Return on Capital Employed (ROCE) for FY24 is 54.14%, and Return on Equity (RoE) stands at 36.56%, further highlighting the company’s robust financials.

Objectives of the Pranik Logistics IPO

   ▪ The proceeds from the IPO will be utilized for the following purposes:

   ▪ Investment in advanced technology for business operations.

   ▪ Meeting capital expenditure requirements.

   ▪ Addressing working capital needs.

   ▪ Supporting general corporate purposes.

   ▪ Covering issue-related expenses.

Important Points to Consider

Despite its strong financial performance, the IPO is expected to list with 0% Grey Market Premium, suggesting no immediate listing gains. However, the company’s long-term growth trajectory in the logistics sector could provide value for investors willing to hold the stock.

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This article aims to provide investors with all the essential information about the Pranik Logistics IPO. Stay tuned for live updates on the subscription status, allotment, and listing performance.