Pranik Logistics IPO Sees High Retail Demand on Opening Day

The initial public offering (IPO) of Pranik Logistics commenced on October 10, 2024, attracting significant interest from retail investors. The subscription period for the IPO is set to end on October 14, 2024. As of the first day of bidding, the IPO was already subscribed 2.34 times. It is noteworthy that retail investors showed extraordinary interest, subscribing 4.33 times the shares reserved for them.

Pranik Logistics, a company specializing in integrated logistics solutions, has reported that 41.87 lakh shares were bid for by retail individual investors on the opening day, exceeding the 9.66 lakh shares available in that category. In contrast, the Non-Institutional Investors’ (NII) category saw an 84% subscription, with applications received for 3.5 lakh shares against the 4.14 lakh shares available. Qualified Institutional Buyers (QIBs) did not place any bids on the first day, although 5.55 lakh shares are earmarked for them.

The IPO, valued at ₹22.47 crore, offers a completely fresh issue of 29.18 lakh shares, with a price band fixed between ₹73 and ₹77 per share. For retail investors, the minimum bid size is set at 1,600 shares, costing ₹123,200, while High-Networth Individuals (HNIs) must bid for at least two lots or 3,200 shares, which amounts to ₹246,400.

Financially, Pranik Logistics reported a revenue of ₹22.48 crore and a profit-after-tax (PAT) of ₹1.08 crore for the June quarter of FY25. Over the previous fiscal year, FY24, the company’s revenue grew by more than 11% to ₹67.7 crore, with its PAT increasing over four times to ₹4.06 crore. The company’s net worth for the same period expanded by 55% to ₹11.43 crore.

The main objectives for the funds raised through the IPO include investment in technology advancements, meeting capital expenditure and working capital requirements, and covering general corporate purposes and issue expenses. Post-IPO, the promoters will see their stakes reduced from 99.99% to 73.49%.

Pranik Logistics, established in 2015, provides an array of logistics services including transportation, warehousing, material handling, and freight forwarding, supported by a fleet of 86 commercial vehicles and 30 warehouses. The company employs 625 staff as of September 2024.

The registrar for the IPO is Maashitla Securities Private Limited, with Narnolia Financial Services Ltd serving as the book-running lead manager and Prabhat Financial Services as the market maker. Shares are expected to be listed on the NSE SME platform on October 17, 2024.