Pranik Logistics, a prominent logistics service provider in India, specializes in delivering complete logistics solutions from the point of origin to the point of consumption. With its head office located in Kolkata, Pranik Logistics has expanded its operations across Eastern India, providing a diverse range of services including material handling, inventory management, transportation, warehousing, and security solutions.

IPO Details and Subscription Highlights

On October 10, 2024, Pranik Logistics launched its IPO, amounting to ₹22.47 crores, consisting entirely of a fresh issue of 29.18 lakh shares. The subscription period for the IPO will remain open until October 14, 2024, with the allotment expected to be finalized by October 15, 2024. The shares are set to be listed on the NSE SME, with a tentative listing date of October 17, 2024.

The price band for the Pranik Logistics IPO is set at ₹73 to ₹77, requiring a minimum investment of ₹1,23,200 for retail investors based on a lot size of 1,600 shares. High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots, which amounts to ₹2,46,400.

The book-running lead manager for this IPO is Narnolia Financial Services Limited, with Maashitla Securities Private Limited acting as the registrar. Additionally, Prabhat Financial Services Limited will serve as the market maker for this IPO.

Pranik Logistics Limited IPO Live Subscription Status

As of 6:40 PM on October 14, 2024, the Pranik Logistics IPO had been oversubscribed by 201.30 times, indicating exceptional demand from investors. This high level of subscription suggests strong confidence in the company's business model and future growth prospects.

Grey Market Premium Insights

The Grey Market Premium (GMP) for the Pranik Logistics IPO has been reported at ₹0. The GMP serves as an informal indicator of potential listing gains, but its effectiveness can vary due to factors such as market conditions and investor sentiment. The absence of a premium indicates caution, as real price discovery cannot occur before the shares are officially listed.

Objectives of Pranik Logistics Limited IPO

The funds raised from this fresh issue will be allocated towards several key objectives:

Investment in technology to enhance operational efficiency.

Capital expenditure requirements to support growth.

Working capital needs to maintain seamless operations.

General corporate purposes.

Coverage of issue expenses.

Leadership and Financial Performance Overview

Pranik Logistics is guided by experienced promoters: Mr. Pranav Kumar Sonthalia, Ms. Shradha Kumari, and Ms. Minal Sonthalia. Their leadership and vision have been instrumental in the company’s growth trajectory.

Financially, Pranik Logistics has shown impressive growth over the past three fiscal years:

Revenue for Fiscal Years 2024, 2023, and 2022 was ₹6,770.08 lakhs, ₹6,090.62 lakhs, and ₹3,360.96 lakhs, respectively.

EBITDA figures for the same years were ₹934.19 lakhs, ₹345.13 lakhs, and ₹97.61 lakhs.

Profit after Tax stood at ₹406.56 lakhs, ₹93.23 lakhs, and ₹31.54 lakhs across the three fiscal years.

These figures reflect the company’s ability to grow revenue and profitability steadily, positioning it as a key player in the logistics sector.

For the Pranik Logistics IPO, the company is issuing shares at a pre-issue EPS of ₹7.54 and a post-issue EPS of ₹3.96. The pre-issue P/E ratio is 10.21x, while the post-issue P/E ratio stands at 20.86x compared to the industry P/E of 69.39. Additionally, the Return on Capital Employed (ROCE) for FY24 is 54.14%, and the Return on Equity (RoE) is 36.56%, suggesting that the IPO is fairly priced relative to its performance.

Investment Recommendation

Despite the strong demand and favorable financial metrics, analysts advise caution regarding investments in the Pranik Logistics Limited IPO for short-term gains or long-term holdings. Given the zero GMP and prevailing market uncertainties, investors are recommended to avoid the IPO for speculative trading or as a long-term investment opportunity.

Allotment Status Check Guide

For investors who participated in the IPO, the allotment date is scheduled for October 15, 2024. Investors can verify their allotment status by following these steps:

Visit the IPO allotment status page.

Select Pranik Logistics Limited IPO from the dropdown menu.

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

Submit the details to check your allotment status.

This straightforward process enables investors to quickly confirm their allotment status and plan their next steps effectively.

In summary, the launch of the Pranik Logistics IPO signifies robust investor interest, reflecting confidence in the company's growth potential within the logistics sector. As the market awaits its listing, stakeholders will closely monitor the company's performance and strategic initiatives.

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