Pranik Logistics IPO Set for October 2024 Launch

The Pranik Logistics Initial Public Offering (IPO) is a notable event in the Indian financial market, valued at Rs 22.47 crores. This IPO comprises a fresh issue of 29.18 lakh shares, which will be open for subscription from October 10, 2024, to October 14, 2024. The allotment is anticipated to conclude on October 15, 2024, with the shares likely to be listed on the National Stock Exchange (NSE) for Small and Medium-sized Enterprises (SME) on October 17, 2024.

Investors can participate in the Pranik Logistics IPO at a price band set between Rs 73 to Rs 77 per share, with a minimum application lot size of 1,600 shares. For retail investors, the minimum investment required is Rs 1,23,200, while high-net-worth individuals (HNIs) must invest in a minimum of two lots, amounting to Rs 2,46,400.

Narnolia Financial Services Ltd. will act as the book-running lead manager for this IPO, and Maashitla Securities Private Limited has been appointed as the registrar. Prabhat Financial Services will serve as the market maker for Pranik Logistics’ debut on the stock exchange.

Pranik Logistics, a leading logistics service provider in India, is headquartered in Kolkata and predominantly operates in Eastern India. Established in 2015, the company offers a range of services, including transportation, warehousing, material handling, and freight forwarding, catering to a diverse clientele from industries such as retail, consumer durables, telecom, manufacturing, and pharmaceuticals.

The company’s fleet comprises 86 commercial vehicles, and it manages 30 warehouses. Pranik Logistics is recognized for its cost-effective and efficient service offerings, benefits that are attributed to its experienced management team and an asset-light business model. However, the Red Herring Prospectus (RHP) for the IPO outlines several risks, including dependency on third-party technology and existing litigation against its promoters, that could impact the company’s operations and financial health.

The company’s management team boasts significant industry experience and qualifications, maintaining lasting relationships with clients across various sectors. This enables Pranik Logistics to deliver tailored solutions and uphold high standards of service and product quality.

Among the potential risks mentioned in the RHP is the hefty contingent liability of Rs 93 crores in bank guarantees, as of June 30, 2024, which could affect the company’s financial stability if not addressed.

The IPO, with a face value of Rs 10 per share, introduces two key promoters—Pranav Kumar Sonthalia and Shradha Kumari. Retail investors wishing to participate must adhere to a minimum lot size of 1,600 shares, as stated in the details provided.

The grey market premium (GMP) for Pranik Logistics is yet to be updated, according to the latest checks from October 6 and 7, 2024. Interested parties can utilize tools like Unicorn Signals for detailed analyses on current and upcoming IPOs, helping investors in making informed decisions.