Pranik Logistics is a leading logistics service provider in India, offering comprehensive logistics solutions tailored to meet customer needs from the point of origin to the point of consumption. With its head office located in Kolkata, Pranik Logistics is expanding its reach across Eastern India. Their service offerings encompass a complete integration of material handling, inventory management, transportation, warehousing, and often include security services.

The IPO for Pranik Logistics is structured as a Book Built Issue, amounting to ₹22.47 crores, consisting entirely of a fresh issue of 29.18 lakh shares. The subscription period for the IPO opens on October 10, 2024, and will close on October 14, 2024. Allotment is expected to be finalized on or about October 15, 2024, with shares listed on the NSE SME with a tentative listing date set for October 17, 2024.

The share price band for the IPO is set at ₹73 to ₹77 per equity share, necessitating a minimum investment of ₹1,23,200 for retail investors purchasing 1,600 shares. High-Net-Worth Individuals (HNIs) must invest in 2 lots (3,200 shares), totaling ₹2,46,400.

Narnolia Financial Services Limited serves as the book-running lead manager, while Maashitla Securities Private Limited acts as the registrar for the issue. Prabhat Financial Services Limited will serve as the market maker for the Pranik Logistics IPO.

Grey Market Premium and Subscription Status

The Grey Market Premium (GMP) for Pranik Logistics IPO is currently expected to be ₹0, indicating no anticipated listing gains based on current market conditions. It's important to note that trading based on GMP does not reflect real market prices, and the figures are influenced by demand and supply in an unregulated market.

As the IPO opens for subscription on October 10, 2024, investors will be able to assess live subscription status updates.

Allotment Process

The allotment date for the Pranik Logistics IPO is set for October 15, 2024. Investors can check their allotment status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID.

Objectives of the IPO

Proceeds from the fresh issue will be allocated to the following objectives:

Investment in technology

Capital expenditure requirements

Working capital requirements

General corporate purposes

Issue expenses

Financial Performance Overview

Pranik Logistics has exhibited steady financial growth over the past fiscal years. The revenue figures for Fiscal 2024, 2023, and 2022 are as follows:

2024: ₹6,770.08 Lakhs

2023: ₹6,090.62 Lakhs

2022: ₹3,360.96 Lakhs

The EBITDA for the same periods are:

2024: ₹934.19 Lakhs

2023: ₹345.13 Lakhs

2022: ₹97.61 Lakhs

The profit after tax figures were:

2024: ₹406.56 Lakhs

2023: ₹93.23 Lakhs

2022: ₹31.54 Lakhs

For the IPO, Pranik Logistics is offering shares with 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 is 20.86x, compared to the industry average of 69.39. The company's ROCE for FY24 is 54.14%, and RoE stands at 36.56%, suggesting that the IPO is fairly priced.

Conclusion

With the current GMP indicating 0% potential listing gains and the company’s financial performance metrics, investors are advised to approach the Pranik Logistics Limited IPO with caution. Given the overall market dynamics, it may be prudent to avoid this IPO for listing gains or long-term investment strategies.

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