Pranik Logistics IPO: Price Band, Key Details & Subscription Dates

Pranik Logistics Limited was founded in 2015 and offers integrated logistics solutions. The company is a PAN India logistics provider operating as a freight forwarder and transporter, providing integrated services such as transportation, warehousing, material handling, and freight forwarding to its clients in various industries. Pranik Logistics has its own fleet of 86 commercial vehicles and manages 30 warehouses directly. As of 30th September 2024, the company had 625 permanent employees.

The Objectives of the Issue

Pranik Logistics Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Expenses for investment in technology
2. Capital expenditure requirement of the Company
3. Working capital requirements of the Company
4. General corporate purposes
5. Issue expenses

Highlights of Pranik Logistics IPO

Pranik Logistics IPO is set to launch with a book-built issue of ₹22.47 crores. The issue is entirely fresh. Here are the key details of the IPO

• The IPO opens for subscription on 10th October 2024 and closes on 14th October 2024.
• The allotment is expected to be finalised on 15th October 2024.
• Refunds will be initiated on 16th October 2024.
• Credit of shares to Demat accounts is also expected on 16th October 2024.
• The company will tentatively list on NSE SME on 17th October 2024.
• The price band is set at ₹73 to ₹77 per share.
• The fresh issue comprises 29.18 lakh shares, aggregating to ₹22.47 crores.
• The minimum lot size for the application is 1600 shares.
• Retail investors need to invest a minimum of ₹123,200.
• The minimum investment for HNI is 2 lots (3,200 shares), amounting to ₹246,400.
• Narnolia Financial Services Ltd is the book-running lead manager for the IPO.
• Maashitla Securities Private Limited serves as the registrar.
• Prabhat Financial Services is the market maker for the IPO.

Pranik Logistics IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 14th October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Pranik Logistics IPO Issue Details/Capital History

Pranik Logistics IPO is scheduled from 10th October to 14th October 2024, with a price band of ₹73 to ₹77 per share and a face value of ₹10. The total issue size is 29,18,400 shares, raising up to ₹22.47 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 80,91,750 shares, and the post-issue shareholding will be 1,10,10,150 shares. The company has raised ₹6.32 crore from anchor investors, with 8,20,800 shares allocated to them.

Pranik Logistics IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:
 

Investors can place bids for a minimum of 1600 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Pranik Logistics Ltd

Strengths:

• Experienced and qualified management team
• Long-standing customer relationships across various industries
• Asset-light business model
• Quality assurance and standards
• Own fleet of 86 commercial vehicles and 30 directly managed warehouses

Weaknesses:

• Dependence on third-party vehicles for some operations
• Limited geographical presence compared to larger logistics players

Opportunities:

• Growing demand for integrated logistics solutions
• Potential for technological advancements in logistics sector
• Expansion into new geographical areas and industries

Threats:

• Intense competition in the logistics sector
• Fluctuations in fuel prices affecting operational costs
• Regulatory changes impacting the transportation industry

Financial Highlights: Pranik Logistics Ltd

Below are the financial results for the recent periods:

Pranik Logistics Limited has shown significant growth in recent years. The company's revenue increased by 11% and profit after tax (PAT) rose by 336% between the financial year ending on 31st March 2024 and 31st March 2023.
Assets have shown strong growth, increasing from ₹1,404.48 lakhs in FY22 to ₹3,842.75 lakhs as of 30th June 2024, representing a growth of about 173.6% over this period.

Revenue has seen substantial growth, rising from ₹3,360.96 lakhs in FY22 to ₹6,770.08 lakhs in FY24, marking an increase of 101.4% over two years. The revenue for Q1 FY25 (ending 30th June 2024) stands at ₹2,248.89 lakhs, indicating continued strong performance.

The company's profitability has improved significantly. Profit After Tax increased from ₹31.54 lakhs in FY22 to ₹406.56 lakhs in FY24, representing a substantial growth of 1,189% over two years.

Net Worth has shown strong growth, increasing from ₹363.96 lakhs in FY22 to ₹1,252.09 lakhs as of 30th June 2024, a growth of about 244% over this period. Total Borrowings have increased from ₹577.87 lakhs in FY22 to ₹1,961.83 lakhs as of 30th June 2024, which represents an increase of about 239.5% over this period.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. However, investors should note the increase in borrowings and consider the debt-to-equity ratio of 1.57. The substantial increase in Net Worth indicates a strengthening financial position. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.