Premier Roadlines Limited consists of a fresh issue of 60,24,000 shares worth INR 40.36 crores. The company aims to manage borrowings, acquire commercial vehicles, meet working capital needs, and fulfill general corporate purposes.
Premier Roadlines IPO – Important Dates
| Premier Roadlines IPO Date | May 10, 2024 to May 14, 2024 |
| Premier Roadlines IPO Listing Date | May 17, 2024 |
| Premier Roadlines IPO Price | INR 63-67 per share |
| Premier Roadlines IPO Lot Size | 2000 shares |
| Premier Roadlines IPO Total Issue Size | INR 40.36 crores |
| Premier Roadlines IPO Basis of Allotment | May 15, 2024 |
| Premier Roadlines IPO Initiation of Refunds | May 16, 2024 |
| Premier Roadlines IPO Credit of Shares to Demat | May 16, 2024 |
| Premier Roadlines IPO Issue Type | Book Built Issue IPO |
| Premier Roadlines IPO Listing At | NSE SME |
Premier Roadlines Ltd IPO – Company Profile
Premier Roadlines Limited specializes in B2B logistics, offering surface transportation services for goods, including project logistics and over-dimensional cargo movements across India and neighboring countries. In FY 2022-23, they completed 26,000 orders nationwide.
They engage third-party operators for transportation, including small fleet owners, utilizing containerized trucks and trailers. Their IT network connects branch offices and enables real-time operations, bookings, and delivery status monitoring.
They operate their logistics business through a vast transportation network across India, centered around their Registered and Corporate Office in Delhi and 28 Branch Offices in cities like Ahmedabad, Bengaluru, and Mumbai. Key clients include KEC International, ThyssenKrupp, and Tata Project.
Premier Roadlines Ltd IPO Review
Premier Roadlines Technologies’ financial analysis reveals a mixed performance. Revenue and profitability have soared, accompanied by steady equity and liability growth and reduced debt reliance. However, declining returns on net worth and liquidity challenges from a decreasing current ratio raise potential concerns about the company’s financial health.
- Revenue Trend: The revenue increased from ₹13,862.12 lakhs in March 2022 to ₹19,192.65 lakhs in March 2023. The revenue for the current year’s 10-month period ending January 2024 is INR 17,416.63 lakh.
- Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹388.60 lakhs in March 2022 to ₹874.67 lakhs by January 2024. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹2.31 in March 2022 to ₹5.19 by January 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has grown from 19.58% to 24.45%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has declined, indicating weakening liquidity and potential challenges in meeting short-term obligations.
Premier Roadlines IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 January 2024 |
| Revenue (₹ in lakhs) | 13,862.12 | 19,192.65 | 17,416.63 |
| Equity (₹ in lakhs) | 1,984.67 | 2,703.17 | 3,577.83 |
| Expenses (₹ in lakhs) | 13,346.26 | 18,240.42 | 16,243.06 |
| Profit and Loss After Tax (₹ in lakhs) | 388.60 | 718.50 | 874.67 |
| Diluted EPS only (₹) | 2.31 | 4.27 | 5.19 |
| Return on Net Worth (%) | 19.58 | 26.58 | 24.45 |
| NAV per Equity Share (₹) | 11.79 | 16.05 | 21.25 |
| Total Assets (in lakhs) | 5,144.62 | 7,410.76 | 8,699.12 |
| Total Liabilities (in lakhs) | 3,159.96 | 4,707.59 | 5,121.29 |
| Debt-Equity Ratio | 1.19 | 1.36 | 1.04 |
| Current Ratio | 1.73 | 1.74 | 1.63 |
Premier Roadlines Ltd IPO Peer Comparison
Premier Roadlines Limited lacks revenue and PAT data and has a relatively low RoNW. VRL Logistics Limited exhibits robust financial performance and a high RoNW. AVG Logistics Limited demonstrates substantial revenue and RoNW figures. Ritco Logistics Limited shows moderate financial metrics.
| Company | Face Value (₹) | P/E (₹) | EPS (Basic & Diluted) (₹) | RoNW (%) | Book Value (₹) | Total Income (₹ in lakhs) |
| Premier Roadlines Limited | 10 | NA | 4.27 | 26.58 | 16.05 | 19,205.60 |
| VRL Logistics Limited | 10 | 29.73 | 18.80 | 33.12 | 110.46 | 2,66,286.66 |
| AVG Logistics Limited | 10 | 79.61 | 7.09 | 8.76 | 76.23 | 42,989.51 |
| Ritco Logistics Limited | 10 | 27.08 | 9.94 | 16.37 | 60.70 | 75,404.7 |
Premier Roadlines Ltd IPO Objective
The main objective of Premier Roadlines Limited is to facilitate repayment or prepayment of borrowings, purchase commercial vehicles, and fulfill working capital needs, enhancing operational efficiency and sustaining business growth.
- Repayment and prepayment, in whole or part, of certain borrowings availed by the company: Premier Roadlines Limited plans to utilize INR 15 crores towards repayment or prepayment of borrowings, aiming to reduce indebtedness, lower debt servicing costs, and enhance leverage capacity for future growth and expansion.
- Purchase of vehicle for commercial purpose: The company plans to allocate INR 2.76 crores for specialized vehicles, aiming to enhance operational flexibility, reduce dependency on third-party transporters, attract new clients, and capitalize on equipment rental opportunities for potential business growth.
- To Meet Working Capital Requirement: The company plans to allocate INR 14 crores from the Net Proceeds towards working capital needs, primarily for trade receivables, inventories, and trade payables, with additional funds sourced from borrowings as required.
- General Corporate Purpose: The company will balance funds towards general corporate goals, including meeting operating expenses and initial project development costs and enhancing business development and marketing capabilities to effectively address exigencies.
Premier Roadlines Limited IPO Risks And Challenges
Premier Roadlines Limited’s risk includes heavy reliance on leased trucks, vulnerability to third-party vendors, dependence on IT infrastructure, cyber threats, operational challenges in 32 regions, and competition hurdles.
- Premier Roadlines Limited heavily relies on leased or rented trucks for transportation, with expenses accounting for a significant portion of total costs. Dependency on third-party vendors poses risks of capacity constraints, delays, and customer dissatisfaction, potentially adversely impacting business.
- They heavily rely on its information technology infrastructure for operational efficiency and customer service. Cyber threats and system failures pose risks of disruption, requiring potential investment in advanced security measures and technology upgrades, impacting business operations and financial performance.
- They operate in 32 states & Union Territories, with the top 10 regions contributing significantly to revenue. Challenges in assessing promotional needs, expanding into new areas, and competing with established players pose business growth and performance risks.
Premier Roadlines Ltd IPO – Industry & Market Potential
The Indian logistics industry, valued at US$250 billion in 2021, is set to reach US$380 billion by 2025. It’s evolving rapidly due to technological advancements, government initiatives, and a fragmented market structure.
Transport infrastructure boosts economic growth, facilitates workforce transition, and supports India’s integration into a modern network. Key policy reforms are projected to enhance manufacturing, exports, and per capita income significantly.
India possesses the second-largest road network globally, vital for its landlocked nature and historical reliance on air transport. Road transport facilitates cost-effective connectivity and is favored for its accessibility and ease of obtaining licenses.
Premier Roadlines Ltd IPO – Type of Offer
Premier Roadlines Limited consists of a fresh issue of 60,24,000 shares worth INR 40.36 crores. The company aims to manage borrowings, acquire commercial vehicles, meet working capital needs, and fulfill general corporate purposes.
Premier Roadlines IPO Offer Size
The offer size of Premier Roadlines Limited is INR 40.36 crores, consisting of a fresh issue of 60,24,000 shares. The company seeks funds to manage borrowings, acquire commercial vehicles, meet working capital needs, and fulfill general corporate purposes.
Premier Roadlines Limited IPO Allotment Structure
Premier Roadlines allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 304,000 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): 35% 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 15% 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., 304,000 shares are reserved for marker makers.
How to apply for Premier Roadlines’s Ltd IPO?
To apply for the Premier Roadlines IPO through Alice Blue, you would typically 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.
- Check for IPO Details: Once your account is active, you can check for the Premier Roadlines IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Premier Roadlines 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.
How do you check Premier Roadlines’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- 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.
- 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.
- Select the Premier Roadlines 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 Premier Roadlines IPO.
- 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, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Premier Roadlines IPO:
● Registrar’s Website: Visit the website of Maashilta Securities Private Limited, the registrar of the Premier Roadlines 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 websites of the National Stock Exchange (NSE) Small Medium Enterprise (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.
Premier Roadlines Ltd IPO Offer Registrar
The registrar for the Premier Roadlines IPO is Maashilta 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 RIVATE LIMTED
Address: 451, Krishna Apra Business Square,
Netaji Subhash Place, Pitampura,
New Delhi, 110034, India.
Tel No: +91-11-45121795
Email: [email protected]
Website: www.maashitla.com
Premier Roadlines IPO – FAQs
The allotment date of the Premier Roadlines IPO is May 15, 2024.
The price band of the issue is INR 63-67 per share.
The offer size of Premier Roadlines Limited is INR 40.36 crores, consisting of a fresh issue of 60,24,000 shares. The company seeks funds to manage borrowings, acquire commercial vehicles, meet working capital needs, and fulfill general corporate purposes.
The listing date of Premier Roadlines IPO is May 17, 2024.
