Rapid Multimodal Logistics Limited is a leading provider of integrated logistics solutions, offering seamless multi-modal and strategic end-to-end services across road, rail, and ports. This capability ensures comprehensive coverage for clients, optimizing both time and cost efficiency.

IPO Details and Subscription Information

The Rapid Multimodal Logistics IPO is a fixed price issue amounting to ₹8.49 crores, with the entire issue comprising a fresh issue of 10.11 lakh shares. The shares are priced at ₹84 per equity share, and the minimum lot size is 1,600 shares. Retail investors must invest a minimum of ₹134,400, while High-Net-Worth Individuals (HNIs) need to invest in at least 2 lots (3,200 shares), totaling ₹268,800.

The subscription period for the IPO begins on August 22, 2024, and ends on August 27, 2024. The allotment is anticipated to be finalized on August 28, 2024, with shares expected to be listed on the BSE SME platform on August 30, 2024.

Grey Market Premium and Market Sentiment

The Grey Market Premium (GMP) for the Rapid Multimodal Logistics IPO is expected to be in the range of ₹ to ₹. GMP serves as an informal indicator of market sentiment and expected listing gains. As GMP relies on unofficial trading, it should be interpreted cautiously.

Financial Performance and Valuation

The company has shown a positive financial trajectory. Revenue increased from ₹4,774.40 lakhs in FY22 to ₹7,296.17 lakhs in FY23, maintaining stability at ₹7,184.25 lakhs in FY24. EBITDA also demonstrated stability, rising from ₹141.59 lakhs in FY22 to ₹275.78 lakhs in FY24. Profit After Tax (PAT) increased from ₹95.43 lakhs in FY22 to ₹179.23 lakhs in FY24.

For the IPO, the company is offering shares with a pre-issue EPS of ₹6.40 and a post-issue EPS of ₹4.70. The pre-issue P/E ratio is 13.12x, while the post-issue P/E ratio is 17.87x. These figures are compared to the industry norms to assess the IPO’s attractiveness. The company’s Return on Capital Employed (ROCE) for FY24 is 48.98%, and Return on Equity (ROE) is 46.42%, suggesting a fair valuation for the IPO.

Also Read : Forcas Studio IPO Allotment – 3 Ways To Check Allotment Status

Objectives of the IPO

Proceeds from the IPO will be used for the following purposes:

Working Capital: ₹550.00 lakhs will be allocated to enhance working capital.

General Corporate Purposes: ₹175.41 lakhs will be dedicated to general corporate needs.

Investment Recommendation

Given the company's steady financial performance and moderate Grey Market Premium, the Rapid Multimodal Logistics IPO presents a potential opportunity for listing gains and long-term investment. The fair valuation metrics and stable financial indicators make it suitable for risk-tolerant investors. Investors should consider their financial goals and consult with financial advisors before participating.

Conclusion

The Rapid Multimodal Logistics Limited IPO offers a promising investment opportunity within the logistics sector, backed by solid financial performance and favorable market conditions. For further details and investment advice, review the company's Red Herring Prospectus (RHP) and seek professional guidance to make well-informed investment decisions.

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