Pranik Logistics shares made a modest debut on Thursday, October 17, listing at ₹79 on the NSE SME platform, which is a slight premium of 2.5% over the issue price of ₹77. Investors who were looking to buy shares online saw a muted opening for the stock. Despite the strong subscription figures during the bidding period, the initial performance on the bourses was underwhelming.
Pranik Logistics' SME IPO, valued at ₹22.47 crore, was open for public subscription from October 10 to October 14, with a price band of ₹73-77 per share. The IPO received overwhelming demand, with the offer being subscribed 218.02 times.
The IPO saw bids for 42.2 crore shares against the 19.36 lakh shares on offer. Retail investors subscribed to the issue 97.21 times, while the non-institutional investor (NII) category was booked 744.05 times. The qualified institutional buyers (QIB) portion saw a 35.67 times subscription.
Investors had an opportunity to buy shares online during this period, and retail participants needed a minimum investment of ₹1.23 lakh for a lot size of 1,600 shares. The strong demand during the subscription phase did not fully translate into the expected stock price surge upon listing.
The funds raised from the IPO will be deployed for key business objectives. This includes investments in technology upgrades, addressing capital expenditure requirements, and strengthening working capital needs.
The company also aims to allocate part of the funds for general corporate purposes and to cover IPO-related expenses. Investors who chose to buy shares online had the chance to support the company's growth initiatives, with the expectation that these investments would enhance its operational capabilities.
The company raised ₹6.32 crore from anchor investors on October 9, ahead of the public issue, which further bolstered market confidence.
Narnolia Financial Services Ltd acted as the book-running lead manager for the Pranik Logistics IPO, with Maashitla Securities Private Limited serving as the registrar. Prabhat Financial Services was appointed as the market maker for the IPO. Despite the solid demand during the subscription period, the stock's flat debut raised questions among those looking to buy shares online, given the high subscription figures.
While Pranik Logistics has reported consistent growth in revenue and profit over recent years, some market analysts have raised concerns about the sustainability of this growth in such a competitive and fragmented market.
For investors who seek to buy shares online, the long-term potential of Pranik Logistics may still be attractive. The company's business model is centered around providing integrated logistics services, including transportation, warehousing, material handling, and freight forwarding across a wide range of industries.
Founded in 2015, Pranik Logistics Limited provides end-to-end logistics services across India, serving clients in sectors like retail, telecom, consumer durables, manufacturing, and pharmaceuticals. The company operates 86 commercial vehicles, with 30 warehouses under its management.
In the past year, Pranik Logistics reported an 11% rise in revenue, while its profit after tax (PAT) surged by 336%. This significant increase in profitability has drawn attention from investors who want to buy shares online and participate in the company's future growth.
Despite the flat listing, Pranik Logistics' strong fundamentals and growth potential could still appeal to those planning to buy shares online for long-term gains. With its focus on technology investment and expanding its logistics network, the company is well-positioned to tap into India's growing demand for efficient logistics solutions.
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