Pranik Logistics Limited is coming up with an IPO with a fresh issue of 29,18,400 shares worth INR 22.47 crores. The company aims to invest in technology, fund capital expenditure, working capital requirement, and general corporate purposes.

Pranik Logistics IPO – Important Dates

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Pranik Logistics Limited IPO  – Company Profile

Pranik Logistics is a carrying and forwarding agent providing end-to-end Logistics solutions i.e. from the point of origin to the point of consumption, to meet the needs of its customers and corporations. The company is a pan India logistics provider, acting as a carrying and forwarding agent and providing integrated services including transportation, warehousing, material handling, and freight forwarding to its customers belonging to various industries such as Retail, Customer Durables, Telecom, Manufacturing, Pharma, etc. 

The company manages a fleet of commercial vehicles, comprising more than 80 vehicles and the company also manages 30 warehouses.

Pranik Logistics Ltd IPO Fundamental Analysis 

Pranik Logistics has shown steady revenue growth, controlled expenses, and impressive profit growth. Its debt-equity ratio is improving, and the RONW is very attractive, indicating efficient use of capital. With strong EPS growth and stable financial ratios, the company appears to be in good financial health.

Revenue Analysis:

• Growth Trend:
  • Revenue increased from ₹6,052.70 lakhs in FY2023 to ₹6,683.93 lakhs in FY2024, showing moderate growth of 10.4%.
  • Q1 FY2025 revenue of ₹2,230.90 lakhs suggests a continuation of the revenue momentum.

2. Expense Analysis:

• Stable Expenses:
  • Expenses in FY2024 remained the same as in FY2023 at ₹6,213.03 lakhs, demonstrating the company’s ability to control costs.
  • Q1 FY2025 expenses of ₹2,103.49 lakhs indicate expenses are in line with revenue growth.

3. Profitability Metrics:

• Profit After Tax (PAT):
  • PAT surged from ₹93.23 lakhs in FY2023 to ₹406.56 lakhs in FY2024, showing strong profit growth of 336%.
  • Q1 FY2025 PAT was ₹108.90 lakhs, which is a good sign for profitability.
• Earnings Per Share (EPS):
  • Diluted EPS grew from ₹1.73 in FY2023 to ₹7.54 in FY2024, reflecting a significant boost in shareholder value.

4. Equity Position:

• Equity Growth:
  • Equity increased from ₹736.63 lakhs to ₹1,143.19 lakhs, indicating a strengthened capital base.
  • NAV per share improved from ₹13.66 to ₹21.19 by FY2024, although it dropped slightly to ₹15.47 in Q1 FY2025, likely due to the issue of new equity.

5. Return on Net Worth (RONW):

• Performance:
  • RONW jumped from 12.66% in FY2023 to 35.56% in FY2024, which shows an excellent return on shareholder equity.
  • RONW for Q1 FY2025 was 8.70% (not annualized), maintaining healthy profitability.

6. Financial Health Indicators:

• Debt-Equity Ratio:
  • The debt-equity ratio reduced from 1.88 to 1.56 by FY2024, signaling reduced financial leverage.
  • The ratio remained stable at 1.57 in Q1 FY2025, indicating manageable debt levels.
• Current Ratio:
  • The company’s current ratio improved slightly from 1.32 to 1.37 in FY2024, suggesting adequate short-term liquidity.
  • The Q1 FY2025 current ratio of 1.39 further strengthens this position.

7. Overall Financial Strength:

• Total Assets:
  • Assets increased from ₹2,352.7 lakhs in FY2023 to ₹3,568.30 lakhs in FY2024, reflecting a healthy growth in assets.
  • Total assets in Q1 FY2025 further grew to ₹3,842.75 lakhs.
• Total Liabilities:
  • Liabilities also rose from ₹1,616.07 lakhs to ₹2,425.11 lakhs, which is not alarming given the proportional growth in assets and equity.

Pranik Logistics IPO Financial Analysis

Pranik Logistics Limited IPO Peer Comparison

Pranik Logistics Limited posted a profit after tax of ₹406.56 lakhs with an EPS of ₹7.54 and a strong RoNW of 35.56%, while SJ Logistics (India) Limited recorded a much higher profit of ₹2,261.23 lakhs, with an EPS of ₹20.03 and a RoNW of 20.18%. Despite Pranik’s higher RoNW, SJ Logistics has a larger profit and stronger earnings per share.

Pranik Logistics Ltd IPO Objective

Pranik Logistics Limited will invest ₹8 crores in technology/ERP, ₹2.2 crores for warehouse setup, and ₹12 crores for working capital. The remaining funds will be allocated for general corporate purposes, including marketing, business development, and operational expenses.

1. To invest in technology/ERP: The company intends to deploy Net Proceeds aggregating to Rs. 8 crores for the Development of technology and ERP. The objective of this application is to manage orders, vehicle inventory and stock, Attendance management of employees, expenses management, Customer Relationship Management, Reporting and Analytics, Financial Reporting, etc.

2. To meet capital expenditure: The company intends to utilise INR 2.2 crores for setting up warehouses. The company intends to set up a warehouse in Ahmedabad.

3. To meet working capital requirements: The company proposes to utilise INR 12 crores towards funding its working capital requirements in the ordinary course of business.

4. General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.

Pranik Logistics IPO Risks And Challenges

Pranik Logsitic’s reliance on two major customers poses a significant risk and sustained negative cash flows may hinder growth. Additionally, its strong presence in West Bengal makes it vulnerable to regional risks like political changes and competition.

1. More than 50% of the revenue is derived from 2 customers. The loss of a major customer or significant reduction in demand from any of the major customers may adversely affect the business, financial condition, results of operations, and prospects.

2. The Company has had negative cash flows from its operating, investing, and financing activities in the current and past years. Sustained negative cash flow could impact the growth and business.

3. The company operates from West Bengal and hence has a strong presence in the East. Any factors relating to political and geographical changes, growing competition, and any change in demand may adversely affect the business.

Pranik Logistics Ltd IPO – Industry & Market Potential

The India logistics market size reached US$ 282.3 Billion in 2023. Looking forward, the market is expected to reach US$ 557.4 Billion by 2032, exhibiting a growth rate (CAGR) of 7.85% during 2024-2032. 

The significant expansion in the e-commerce and online retail industry, the implementation of favorable government policies encouraging the adoption of logistics services, and emerging technological advancements are some of the major factors contributing to the market growth.

Furthermore, the implementation of government initiatives, such as the development of the Delhi-Mumbai Industrial Corridor (DMIC) and the Western Dedicated Freight Corridor (WDFC), enhances transportation infrastructure in these regions, contributing to their logistics prowess.

Pranik Logistics Limited IPO – Type of Offer

Pranik Logistics Limited is launching an IPO with a fresh issue of 29,18,400 shares valued at INR 22.47 crores. The proceeds will be used for technology investment, capital expenditure, working capital needs, and general corporate purposes.

Pranik Logistics IPO Offer Size

The offer size for Pranik Logistics Limited’s IPO is INR 22.47 crores, consisting of a fresh issue of 29,18,400 shares. The company plans to invest in technology, fund capital expenditure, working capital requirements, and general corporate purposes.

Pranik Logistics Limited IPO Allotment Structure

Pranik Logistics Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,61,600 shares are reserved for market makers. 

 ● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 1,61,600 shares, are reserved for market makers. `

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How to apply for the Pranik Logistics IPO?

To apply for the Pranik Logistics Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Pranik Logistics Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Pranik Logistics Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

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How do you check Pranik Logistics IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Pranik Logistics Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Pranik Logistics Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Pranik Logistics Limited IPO:

● Registrar’s Website: Visit the website of Maashitla Securities Private Limited, the registrar of the Pranik Logistics Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● NSE SME: You can also check the allotment status on the official website of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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Pranik Logistics Ltd IPO Offer Registrar

The registrar for the Pranik Logistics Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Maashitla Securities Private Limited

451, Krishna Apra Business Square, 

Netaji Subhash Place,

Pitampura, Delhi – 110034, India

Telephone: 011-45121795

Email: [email protected]

Website: www.maashitla.com

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Pranik Logistics IPO  – FAQs

1. What is the allotment date of the Pranik Logistics IPO? 

The allotment date of the Pranik Logistics Limited IPO is October 15, 2024. 

2. What is the price band of the Pranik Logistics IPO? 

The price band of the issue is INR 73-77 per share. 

3. What is the size of the Pranik Logistics IPO? 

The offer size for Pranik Logistics Limited’s IPO is INR 22.47 crores, consisting of a fresh issue of 29,18,400 shares. The company plans to invest in technology, fund capital expenditure, working capital requirements, and general corporate purposes.

4. What is the listing date of the Pranik Logistics IPO? 

The listing date of Pranik Logistics Limited’s IPO is October 17, 2024.