Pranik Logistics IPO: Here are 10 latest Key things you need to know

Pranik Logistics IPO is scheduled to open for subscription on October 10, 2024, and will close on October 14, 2024. Investors will have a total of five days to apply for shares in this NSE SME IPO. The timeline provides sufficient opportunity for interested parties, including retail investors, QIBs, and HNIs, to participate in this offering.

2. IPO Size and Structure

Pranik Logistics aims to raise approximately ₹22.47 Crores through its IPO. This IPO is a 100% fresh issue, meaning all the funds raised will be from new shares issued by the company rather than existing shareholders. The proceeds will be directly utilized by the company for various growth initiatives, including investment in technology, capital expenditure, and meeting its working capital requirements.

3. Price Band and Market Lot

The IPO has been priced with a band ranging between ₹73 and ₹77 per share, giving investors a specific price window to bid within. The market lot size has been set at 1,600 shares, which means the minimum investment required per application is approximately ₹140,000, depending on the final price. The fixed lot size ensures that investors adhere to the set structure when applying for shares.

4. Allocation for Investors

The IPO is structured with allocation across different investor categories: 35% of the shares are reserved for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High-Net-Worth Individuals (HNIs). This distribution strategy ensures a balanced participation, allowing both institutional and individual investors to be part of the offering, with retail investors getting a significant portion.

5. Company Background

Established in 2015 and headquartered in Kolkata, West Bengal, Pranik Logistics Limited provides a comprehensive range of logistics and supply chain services. The company operates from its base at P. S. Srijan Tech Park and has expanded rapidly over the years. Its services include freight forwarding, warehousing, material handling, and transportation solutions, all designed to cater to a diverse clientele. The company has also invested in advanced technology solutions to enhance its efficiency and meet the evolving needs of its clients.

6. IPO Listing and Timeline Details

The shares from Pranik Logistics IPO will be listed on the NSE SME platform. The timeline for important events in the IPO process includes the basis of allotment on October 15, 2024, followed by refunds and credit of shares to the Demat accounts of successful bidders on October 16, 2024. The company’s shares are expected to begin trading publicly on the NSE SME platform on October 17, 2024.

7. Financial Performance

Pranik Logistics has shown consistent growth over the past few years. In 2022, the company reported revenue of ₹33.61 Crores with a Profit After Tax (PAT) of ₹0.32 Crores. By 2024, the revenue had nearly doubled to ₹67.70 Crores, with a significant increase in PAT to ₹4.07 Crores. The company’s assets also grew from ₹14.04 Crores in 2022 to ₹35.68 Crores in 2024, reflecting its expanding business operations and improved financial health.

8. Business Strategy and Growth Initiatives

Pranik Logistics’ business strategy focuses on expanding its operational capabilities and enhancing technology integration. The company has invested in advanced technology to automate and optimize its logistics processes, aiming to provide seamless and efficient solutions for its clients. Moreover, Pranik Logistics has significantly expanded its infrastructure by adding 30 new warehouses to its network, supporting the growing demand for its services. The company also emphasizes a client-centered approach, offering customized logistics solutions to build long-term relationships and ensure customer satisfaction.

9. IPO Objectives

The funds raised from the IPO will be allocated to various strategic initiatives aimed at bolstering the company’s growth. The key objectives include investment in technology to enhance the efficiency of logistics operations, capital expenditure for infrastructure development, working capital needs to support business expansion, and covering general corporate expenses. The company plans to use these resources effectively to strengthen its market position and service capabilities.

10. Valuation Metrics and Financial Ratios

Pranik Logistics’ valuation metrics and financial performance indicators showcase its strong business foundation. The company’s Return on Equity (ROE) stands at 35.56%, while its Return on Capital Employed (ROCE) is an impressive 54.14%, highlighting efficient use of capital. Additionally, the EBITDA margin of 13.98% and a PAT margin of 6.08% demonstrate the company’s profitability. The Debt to Equity Ratio is 2.20, indicating a moderate level of leverage. The company’s Earnings Per Share (EPS) for FY2024 is ₹7.54, with a Net Asset Value (NAV) of ₹21.19 per share, reflecting its financial stability and growth potential.