Pranik Logistics IPO: Date, Price, GMP, Review, and Allotment Details

Introduction to Pranik Logistics Limited IPO

The name of Pranik Logistics Limited is fast emerging into the Indian logistics sector, and its IPO stock market offering seems to command everyone’s attention. Founded back in 2015 by Pranav Kumar, Pranik has shot up the ranks with a compounded annual growth rate of over 65% in five years as it emerged as one of the top logistic companies of India.

• Pranik Logistics provides integrated logistics services, including transportation, warehousing, material handling, and freight forwarding across various industries like automotive, engineering, consumer durables, and retail.
• The company operates across 13 states in India and directly manages 30 warehouses, showcasing its extensive network and operational reach.

Pranik Logistics Limited: A Comprehensive Overview of a Growing Leader in India’s Logistics Industry

IPO Launch Details: Dates, Pricing, and More.

Pranik Logistics Limited IPO, one of the most awaited public issues for the year 2024, is going to open up for subscription between 10th to 14th October 2024. Interested investors can invest in Pranik IPO shares within the price band of ₹73-₹77. According to the fresh issue of 2,918,400 equity shares, it is going to raise about ₹22.47 crores. It has earmarked it for technological upgradation, capital expenditure, working capital requirements and general corporate purposes, which manifests strategic growth.

Here are the key dates for the Pranik Logistics Limited IPO in tabular form:

Event	Date
IPO Opens for Subscription	October 10, 2024
IPO Closes for Subscription	October 14, 2024
Basis of Allotment Finalized	October 15, 2024
Refunds Initiated	October 16, 2024
Credit of Shares to Demat	October 16, 2024
Listing on NSE SME	October 17, 2024

Here’s the table updated with details for the Pranik Logistics Limited IPO:

IPO Details	Information
Company Name	Pranik Logistics Limited
IPO Size	₹22.47 crore
New Issue	₹22.47 crore (29.18 lakh equity shares)
Price Band	₹73 – ₹77 per share
Face Value	₹10 per share
Listing Exchange	NSE SME
Minimum Bid Lot	1600 shares
Minimum Investment	₹1,23,200 (at the upper price band)
Issue Type	Book-built Issue
Issue Category	SME IPO
QIB Allocation	Not specified, typical for SME IPOs is 50%
NII Allocation	Not specified, typical for SME IPOs is 15%
Retail Allocation	35%
Company Sector	Logistics

This table adjusts the specifics to reflect the Pranik Logistics Limited IPO, maintaining the structure for clarity and comparison with other IPOs.

This table summarizes the critical timeline for investors to follow regarding the Pranik Logistics Limited IPO.

Financial Performance and Health

Pranik Logistics has not only grown in scale but also maintained healthy financials, which have sustained the attraction for investment. Diversifying its services portfolio from transport to warehousing and more, the company’s financials reflect efficient operations combined with a healthy marketplace. Revenue as well as profitability growth underlines the readiness to go for an IPO and is an attractive proposition for any investor eyeing Pranik Logistics stock market debut.

Financial Metric	31 Mar 2024	31 Mar 2023	Change (%)
Assets	₹3,568.30 Lakhs	₹2,352.73 Lakhs	+51.7%
Revenue	₹6,770.08 Lakhs	₹6,090.62 Lakhs	+11.2%
Profit After Tax (PAT)	₹406.56 Lakhs	₹93.23 Lakhs	+336%
Net Worth	₹1,143.19 Lakhs	₹736.63 Lakhs	+55.2%
Reserves and Surplus	₹603.74 Lakhs	₹197.18 Lakhs	+206.2%
Total Borrowing	₹1,783.95 Lakhs	₹1,382.09 Lakhs	+29%

Summary of the fiscal performance of Pranik Logistics Limited for fiscal years ending March 2024 and March 2023:

• Assets Growth: There is an overall growth in assets at 51.7%, from ₹2,352.73 Lakhs to ₹3,568.30 Lakhs, which may be a result of extending the infrastructure or purchasing new resources.
• Revenue Growth: The company saw a revenue increase of 11.2%, from ₹6,090.62 Lakhs to ₹6,770.08 Lakhs, indicating moderate but stable growth in the operational income.

The most striking increase was in Profit After Tax, which moved from ₹93.23 Lakhs to ₹406.56 Lakhs, thus increasing 336%. This implies substantial betterment in cost management or profit margins, or this might be one-time gains.

• Net Worth: Net Worth increased by 55.2%, that is, from ₹736.63 Lakhs to ₹1,143.19 Lakhs, indicating an increase in equity base of the company.
• Reserves and Surplus: Reserves increased by 206.2% from ₹197.18 Lakhs to ₹603.74 Lakhs, thus, indicating retained earnings or profits preserved for reinvestments or for payout as dividends.
• Debt Position: Total Borrowing rose by 29% from ₹1,382.09 Lakhs to ₹1,783.95 Lakhs. This would be on account of financing growth ventures or scaling up operations; however, this escalates financial leverage.

In other words, Pranik Logistics Limited is in great financial health with a high growth rate in almost all the crucial financial metrics, especially in profit and reserves, which indicates that the company is successfully following the right financial strategy as well as working effectively in its operations. On the contrary, an increasing trend in borrowings points to a fact of dependence on debt for growth, which needs to be handled with caution by investors in terms of sustainability over a long term and management of risk for the future.

Pranik Logistics Limited IPO GMP and Subscription

Till date of opening IPO, GMP was around ₹20, however, Grey Market Premium varies and can be highly erratic and is not always indicative of the IPO’s performance but can give some idea about the mind of the investors.
Subscription: Subscription status is not available, but it would then indicate a great eagerness about the IPO, especially where such details are there like an allocation of 35% for the sake of retail investors, which further goes to hint at a high retail subscription plan.

Pranik Logistics Limited IPO EPS and PE Ratio

Valuation for IPO: When considering the IPO price band of ₹73 to ₹77, and knowing the total issue size:

EPS Calculation: If we take the PAT for FY24, divide by the number of shares issued in the IPO (assuming all fresh issue for simplicity):

Let’s say 29.18 lakh shares were issued for the entire issue size (which isn’t accurate for exact share count but for illustration)

:EPS=₹406.56 Lakhs/29.18 lakh=406.56/29.18≈₹13.4 per share

This is a rough estimate without actual share count.

P/E Ratio: Using the upper end of the IPO price band:P/E Ratio=₹77/₹13.4≈5.75

This P/E calculation assumes the IPO shares issued are the total outstanding shares, which may not be the same. The valuation may vary for more accurate one would require the post IPO total outstanding shares.

Company Pranik Logistics Limited shows good profit growth and sound health metrics, that attracts investor’s attention. The revenue growth, debt growth, and valuation factors suggest to be wary of the issues. Before investing in the equity, individuals must:

Analyzing its business model and market position
Understanding the profit growth sources, mainly by non-recurring items.
Understanding its debt-to-equity ratio and how that can further destabilize the finances.
Comparison of P/E ratio with peer companies and understand if IPO price provides any prospect for future growth.

It is worth noting that the analysis above provides a snapshot; a more comprehensive investment decision would, however, require going deeper into due diligence or financial advisors advice.

Investment Risks and Opportunities

Based on information up to October 8, 2024, this is a risk and opportunity assessment for Pranik Logistics Limited:

Opportunities

Growing Logistics Industry in India: With e-commerce, manufacturing, and increasing consumption, the logistics industry in India is growing. Pranik Logistics, with its end-to-end solutions, would be able to capitalize on this trend.

• Diversification: Pranik has diversified its services in warehouse, transportation, and freight forwarding, which will help to mitigate the risks from a single service line as well as generate revenue from multiple channels.
• Technology Investment: Part of the IPO proceeds is allocated for technology development. It may help in achieving greater operational efficiency, better service delivery, and may have a positive impact on its margins.
• Market Expansion: The funds would be capable of scaling up the company’s fleet and their warehousing capacities, thereby increasing the operations and perhaps sweeping up more market share.
• Good Commercial Business Relationship with Large Clients: Clients such as Reliance, Nestle, and Tata depict a solid commercial business relationship that could give stable revenues.
• Trends in IPO Market: Some of the recent SME IPOs are opening with significant premiums, which might suggest a comfortable market reception if this sentiment holds.

Risks:

• High Debt: There is a trend observed in that fact that this company does reflect a marked rise in borrowings. High debt levels put immense pressure on the company’s finances, primarily in case interest rates harden or cash flows portray development issues.
• Profitability Issues: Although there is a healthy jump in PAT, the sustainability of such profit growth raises questions if one-time gains are included or if it is due to factors that might not be sustainable.
• Competition Sensitive Industry: Logistics is an extremely competitive and fragmented industry. It is challenging for Pranik to sustain and/or increase its market share.
• Operational Risks: Operations, especially with logistics expansion, also have some operational risks in terms of delays, damages, strict regulatory compliance, and integration of technology systems.
• Valuation: Since the asking P/E ratio is apparently based on recent earnings and seems reasonable, then profit is not sustainable enough, meaning asking is too high.
• Market Volatility: SME IPOs can be very sensitive to market conditions. Economic downturns or changes in investor sentiment toward SMEs can have an impact on post-IPO performance.

Conclusion:

For investors looking at Pranik Logistics Limited, opportunities lie in sector growth, technology adoption, and expansion plans funded by the IPO. However, this has significant risk attached to it- company debt levels, a competitive industry, and issues about the sustainability of profit growth. Therefore, any investment in Pranik Logistics can be viewed as a bet on India’s logistics growth story but with caution due to leveraging of finances and industry dynamics. Any potential investor should:

Management Quality: How well the management can lead the company through its expansion process while maintaining its ability to deal with debt and operational complexities would be monitored.
The analysis here implies a balanced approach wherein the prospects for growth are on one side of the scale and considerable financial and operational risks on the other.

Due Diligence: Track how the proceeds of the IPO are being put to use, extremely detailed financials, and would have sufficient strategic plans for taking care of and restructuring debt.

Monitoring Market Conditions: Keep a check both on how trends are shaping in logistics and at what level markets are still skeptical about the prospects of any IPO.