Pranik Logistics Limited has opened its highly anticipated Initial Public Offering (IPO) for subscription today, October 10, 2024. Pranik Logistics, a leading logistics service provider in India, has been gaining attention with its extensive operations across Eastern India, offering integrated logistics solutions, including material handling, inventory management, warehousing, transportation, and security.

The IPO, a book-built issue valued at ₹22.47 Crores, will close for subscription on October 14, 2024. The offering comprises a fresh issue of 29.18 lakh equity shares, with the price band set between ₹73 to ₹77 per share. Retail investors can bid in lots of 1,600 shares, translating to a minimum investment of ₹1,23,200, while High-Net-Worth Individuals (HNIs) are required to apply for a minimum of two lots (3,200 shares), which amounts to ₹2,46,400.

Key Details of the Pranik Logistics IPO:

▪ IPO Size: ₹22.47 Crores

▪ Issue Type: Book-Built

▪ Price Band: ₹73 - ₹77 per share

▪ Minimum Lot Size: 1,600 shares

▪ Subscription Period: October 10 to October 14, 2024

▪ Listing Date (Tentative): October 17, 2024

▪ Exchange: NSE SME

▪ Lead Manager: Narnolia Financial Services Limited

▪ Registrar: Maashitla Securities Private Limited

Anchor Investors:

Pranik Logistics raised ₹6.32 Crore from anchor investors, allocating 8,20,800 equity shares at ₹77 per share, the upper end of the price band. This strategic move, done in consultation with the Book Running Lead Manager, reflects investor confidence ahead of the full subscription phase.

Financial Performance:

The company has demonstrated impressive financial growth, with revenue surging to ₹6,770.08 Lakhs in Fiscal 2024, up from ₹6,090.62 Lakhs in Fiscal 2023 and ₹3,360.96 Lakhs in Fiscal 2022. Similarly, EBITDA has seen significant growth, standing at ₹934.19 Lakhs in FY24 compared to ₹345.13 Lakhs in FY23. Profit after Tax (PAT) also jumped to ₹406.56 Lakhs in FY24 from ₹93.23 Lakhs in FY23.

IPO Grey Market Premium (GMP):

The Grey Market Premium (GMP) for Pranik Logistics stands at ₹0, based on its current financials. While the GMP might fluctuate depending on market conditions, it is not necessarily an indicator of the post-listing performance. Investors are advised to exercise caution and focus on the fundamentals before making investment decisions.

Allotment and Listing Details:

The allotment for the Pranik Logistics IPO is expected to be finalized on or around October 15, 2024, with the listing of shares tentatively scheduled for October 17, 2024 on the NSE SME platform. To check your allotment status, follow these steps:

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

▪ Select "Pranik Logistics IPO" from the dropdown.

▪ Enter your Application Number, PAN, or DP Client ID.

▪ Submit the details to view the allotment status.

Objectives of the IPO:

The funds raised from the Pranik Logistics IPO will be used for several key purposes, including:

▪ Investment in Technology: Enhance the company’s technological infrastructure.

▪ Capital Expenditure: Expand and upgrade operational facilities.

▪ Working Capital: Support the company’s day-to-day operational needs.

▪ General Corporate Purposes: Meet other business-related expenses.

▪ IPO Expenses: Cover the costs of the public offering.

Investment Outlook:

The company's solid Return on Capital Employed (ROCE) of 54.14% and Return on Equity (ROE) of 36.56% in FY24 indicate a well-managed, profitable business. However, based on its current P/E ratios, the IPO might seem fully priced, with limited potential for listing gains. As a result, it is recommended that investors exercise caution and consider long-term investment strategies rather than seeking immediate gains.

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