Pranik Logistics Limited, a leading logistics service provider in India, has launched its Initial Public Offering (IPO) with a fresh issue worth ₹22.47 crores, consisting of 29.18 lakh shares. The subscription period for this book-built issue opens on October 10, 2024, and closes on October 14, 2024. This IPO offers investors a unique opportunity to invest in one of the key players in the logistics industry, particularly in Eastern India, where the company operates extensively with headquarters in Kolkata.

The company provides end-to-end logistics solutions for its clients, integrating material handling, inventory, transportation, warehousing, and security services. As the logistics sector in India is on the rise due to increasing industrial activities and the growth of e-commerce, Pranik Logistics positions itself as a strong contender in this competitive space.

IPO Details and Price Band

The price band for the Pranik Logistics IPO has been set between ₹73 to ₹77 per equity share, with the minimum lot size of 1,600 shares. This means retail investors will need to invest a minimum of ₹1,23,200, while High-Net-Worth Individuals (HNIs) must invest in at least two lots (3,200 shares), totaling ₹2,46,400.

The lead manager for this issue is Narnolia Financial Services Limited, with Maashitla Securities Private Limited as the registrar and Prabhat Financial Services Limited acting as the market maker for this IPO.

Anchor Investor Participation

The company has already raised ₹6.32 crores from anchor investors, allocating 8,20,800 equity shares at a price of ₹77 per share. This participation from anchor investors reflects market confidence in the company's prospects.

Pranik Logistics Financial Performance

Pranik Logistics has shown consistent financial growth over the past three years. For Fiscal Year (FY) 2024, the company's revenue was ₹6,770.08 lakhs, up from ₹6,090.62 lakhs in FY 2023, and ₹3,360.96 lakhs in FY 2022. The company's EBITDA also increased significantly, from ₹97.61 lakhs in FY 2022 to ₹934.19 lakhs in FY 2024.

Furthermore, the company's Profit After Tax (PAT) has grown from ₹31.54 lakhs in FY 2022 to ₹406.56 lakhs in FY 2024, indicating a sharp upward trend in profitability. Pranik Logistics is issuing shares at a pre-issue EPS of ₹7.54 and a post-issue EPS of ₹3.96. The P/E ratio is 10.21x pre-issue and 20.86x post-issue, suggesting the stock is fairly valued.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for the Pranik Logistics IPO is currently expected to be ₹0, reflecting neutral sentiment before listing. It’s important to note that GMP often depends on the demand and supply of shares in the grey market, which is largely unregulated. Therefore, investors should focus on fundamental analysis rather than GMP.

As of October 10, 2024, the IPO had been subscribed 1.06 times, with more updates expected as the subscription period progresses. Investors can track the live subscription status on the NSE website for real-time updates.

Use of Proceeds

The proceeds from the fresh issue will be utilized for the following purposes:

o Investment in technology, enhancing operational efficiencies.

o Capital expenditure to support expansion plans.

o Working capital requirements for scaling up the company's operations.

o General corporate purposes.

o Covering issue-related expenses.

How to Check Pranik Logistics IPO Allotment

The allotment date for the Pranik Logistics IPO is October 15, 2024. Investors can check their allotment status by following these steps:

o Go to the Registrar's website or the NSE IPO allotment page.

o Select Pranik Logistics IPO from the dropdown menu.

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

o Click Submit to view the allotment status.

Once the allotment status is available, investors can proceed with further actions based on the shares allotted to them.

Final Thoughts and Recommendation

While Pranik Logistics has demonstrated strong financial growth, the neutral Grey Market Premium and the company’s valuation suggest that the IPO may not offer significant listing gains. The company's P/E ratio of 20.86x post-issue indicates that it is fairly priced compared to peers. Investors looking for long-term growth and exposure to the logistics sector may find this IPO attractive. However, for those seeking short-term listing gains, it might be advisable to proceed with caution.

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By focusing on Pranik Logistics' strong growth, its IPO details, and subscription status, this article provides readers with everything they need to make informed decisions. For more IPO reviews and updates, stay tuned to Finance Saathi.