Pranik Logistics makes flat debut, lists at ₹79, up just 2.5% from IPO price

Pranik Logistics IPO listing: Shares of Pranik Logistics IPO made a muted debut on the bourses on Thursday, October 17 as they listed at ₹79 on NSE SME, a premium of just 2.5 per cent over the issue price of ₹77.

The SME IPO, valued at ₹22.47 crore, was open for subscription from October 10 to October 14. The public offer was priced in the range of ₹73-77 per share.

Following the three days of bidding, Pranik Logistics IPO closed with overwhelming demand, garnering 218.02 times bids. The IPO received bids for 42.2 crore shares against 19.36 lakh shares on offer. The retail investor segment saw a subscription of 97.21 times, while the non-institutional investors (NII) category was booked 744.05 times. The qualified institutional buyers (QIB) quota was subscribed 35.67 times.

About the IPO

Pranik Logistics IPO was entirely a fresh issue of 29.18 lakh shares with no offer-for-sale (OFS) component. Pranik Logistics raised ₹6.32 crore from anchor investors on October 9, 2024. Retail investors could apply with a minimum lot size of 1,600 shares, requiring a minimum investment of ₹1.23 lakh.

The company plans to utilise the raised funds for several key objectives, including investing in technology, addressing its capital expenditure requirements, and supporting its working capital needs. Additionally, the funds will be allocated towards general corporate purposes and to cover issue-related expenses.

Narnolia Financial Services Ltd is the book-running lead manager of the Pranik Logistics IPO, while Maashitla Securities Private Limited is the registrar for the issue. The market maker for Pranik Logistics IPO is Prabhat Financial Services.

"The company is engaged in providing end-to-end logistics services on a Pan India basis. It is primarily operating as a carrying and forwarding agent. The company marked steady growth in its top lines for the reported periods, but a sudden boost in pre-IPO periods from FY24 onwards raises eyebrows and concern over its sustainability as it is operating in a highly competitive and fragmented segment. Based on FY25 annualized super earnings, the issue appears fully priced. Well-informed/cash surplus investors may park moderate funds in this fully priced issue for the long term," Dilip Davda of Chittorgarh.com said.

About the Company

Founded in 2015, Pranik Logistics Limited provides integrated logistics solutions across India, offering services such as transportation, warehousing, material handling, and freight forwarding to clients in industries like retail, telecom, consumer durables, manufacturing, and pharma. The company operates a fleet of 86 commercial vehicles, available for lease if needed, and manages 30 warehouses directly. Between March 31, 2023, and March 31, 2024, Pranik Logistics saw an 11 per cent increase in revenue and a 336 per cent surge in profit after tax (PAT).