Pranik Logistics Limited launched its Initial Public Offering (IPO), inviting investors to participate in a fresh equity issue aimed at raising ₹22.47 crore. The IPO is priced between ₹73 and ₹77 per share, with a minimum application lot size of 1,600 shares, translating to an investment of approximately ₹123,200 for retail investors.
Main Points
Pranik Logistics IPO Overview
- Issue Size: ₹22.47 crore
- Price Band: ₹73 to ₹77 per share
- Lot Size: 1,600 shares
- Total Shares Offered: 29.18 lakh shares
The IPO will remain open for subscription until October 14, 2024. The allotment of shares is expected to be finalized on October 15, with the shares likely listed on the NSE SME platform by October 17.
Pranik Logistics IPO Subscription Status
As of the first day of bidding, the IPO has shown promising interest. By mid-morning on October 10, it was subscribed approximately 1.24 times, with retail investors leading the charge at 2.34 times their reserved quota. However, non-institutional investors have seen a lower subscription rate of 0.35 times.
Company Profile
Founded in 2015, Pranik Logistics provides comprehensive logistics solutions across India. The company specializes in transportation, warehousing, and freight forwarding services tailored for various sectors including retail, telecommunications, pharmaceuticals, and manufacturing. With a fleet of over 80 vehicles and management of 30 warehouses, Pranik Logistics aims to enhance its operational capacity through this IPO.
Financial Performance
In the financial year ending March 2024, Pranik Logistics reported total revenues of approximately ₹66.83 crore and a net profit of ₹4.06 crore. This reflects an 11% increase in revenue and a remarkable 336% growth in profit after tax compared to the previous year.
Objectives of the Issue
The funds raised from this IPO will be allocated as follows:
- Technology Development: ₹8 crore for enhancing technology and ERP systems.
- Warehouse Setup: ₹2.2 crore for establishing new warehouses.
- Working Capital Requirements: ₹12 crore to bolster operational efficiency.
- General Corporate Purposes: Remaining funds for marketing and business development initiatives.
Key Dates
| Event | Date |
|---|---|
| IPO Opening Date | October 10, 2024 |
| IPO Closing Date | October 14, 2024 |
| Allotment Date | October 15, 2024 |
| Listing Date | October 17, 2024 |
Promoter Holding
Pranik Logistics is primarily promoted by its founders who hold significant stakes in the company. The exact percentage of promoter holding will be disclosed post-IPO allotment.
Pranik Logistics IPO Market Sentiment
Currently, the Grey Market Premium (GMP) for Pranik Logistics shares stands at zero, indicating no anticipated listing gains based on current market sentiments. This could suggest cautious investor sentiment regarding immediate returns from this IPO.
FAQs about Pranik Logistics IPO
- What is the allotment date?
- The allotment date is scheduled for October 15, 2024.
- What is the price band?
- The price band is set at ₹73 to ₹77 per share.
- What is the minimum investment required?
- Retail investors need to invest a minimum of ₹123,200 for one lot (1,600 shares).
- How will the funds be utilized?
- Funds will be used for technology investments, capital expenditures, working capital needs, and general corporate purposes.
- Who are the lead managers?
- Narnolia Financial Services Ltd is the book-running lead manager while Maashitla Securities Private Limited serves as the registrar.
As Pranik Logistics embarks on this significant step into public markets, investors are closely monitoring its performance and potential impact on the logistics sector in India.
