Brace Port Logistics IPO: issue date, price, lot size

IPOs have always been a favourite time for investors. It's one of the promising opportunities the stock market can offer. Likewise, the upcoming Brace Port Logistics Limited IPO has caught the attention of investors looking to capitalise on it. As one of the most anticipated IPOs to invest in, this offering presents a unique chance to grow your money in a rapidly evolving sector. With its IPO date approaching, 19th August 2024, it's crucial to understand the key details and review the potential this investment holds.

Here's a quick take on what is anticipated from the Brace Port Logistics IPO. Is it one of the noteworthy IPOs to invest in or not? Let's find out.

Who are Brace Port Logistics Limited?

Brace Port Logistics Limited is a dynamic and rapidly growing logistics company that specialises in providing comprehensive end-to-end supply chain solutions. The company was established with a strong and clear vision to streamline and optimise the movement of goods. The company has built a strong reputation in the logistics industry over the years with their perseverance. Speaking of the services that they offer, they encompass a wide range of logistics needs, including freight forwarding, warehousing, transportation, and distribution.

The commitment to innovation, clubbed with strong infrastructure, enables Brace Port Logistics to ensure efficient and timely delivery of goods across various sectors. Hence cementing their company's entry into the market as one of the noteworthy IPOs to invest in. The company's focus on technology-driven solutions and customer-centric services has enabled it to cater to a diverse clientele. This includes businesses from industries such as manufacturing, retail, and e-commerce.

Their expertise in managing complex supply chains, coupled with a strategic approach to logistics, positions Brace Port Logistics as a key player in the industry. As they prepare for their upcoming IPO, the company's strong foundation and growth potential make them an attractive prospect for investors.

Brace Port Logistics IPO fundamentals

1. IPO open date: 19th August 2024, Monday
2. IPO close date: 21st August 2024, Wednesday
3. Basis of allotment: 22nd August 2024, Thursday
4. Initiation of refunds: 23rd August 2024, Friday
5. Credit of shares to demat: 23rd August 2024, Friday
6. Listing date: 26th August 2024, Monday
7. Cut-off time for UPI mandate confirmation: 5 PM on 21st August 2024
8. Face value: ₹10 per share
9. Price band: ₹76 to ₹80 per share
10. Lot size: 1600 Shares
11. Total issue size: 3,051,200 shares (aggregating up to ₹24.41 Cr)
12. Fresh issue: 3,051,200 shares (aggregating up to ₹24.41 Cr)
13. Issue type: Book Built Issue IPO
14. Listing at: NSE SME
15. Shareholding pre-issue value: ₹8,250,000
16. Shareholding post issue value: ₹11,301,200
17. Market maker portion: 155,200 shares, Holani Consultants

How much can be invested in the Brace Ports Logistics IPO?

Investors of all categories are eligible for this IPO. However, unlike some of the recently closed IPOs, this one has an investing scope for all three categories. Here's the breakdown:

1. QIB (Qualified Institutional Buyer)

For sophisticated financial experts, at most 50.00% of the net shares offered are allowed.

2. Retail Investors

At least 35% of the shares in the offering are reserved for retail investors.

3. High Networth Investors

Not less than 15% of the offer will be reserved for Non-Institutional Investors (NII), which includes High Net Worth Individuals (HNI).

Brace Port Logistics IPO review

Brace Port Logistics Limited is a relatively new player in the cargo logistics sector, having commenced operations in 2020. Here is a quick analysis of what its IPO is going to look like:

1. Financial Performance: The company's track record demonstrates consistent revenue and profit growth over the last three financial years.
2. Reasonable Valuation: The IPO is priced at a P/E of 18.48 based on FY24 earnings and a P/BV of 2.37 post-IPO. This valuation appears reasonable, given the company's growth prospects.
3. Experienced Management Team: The management team has a good track record in the logistics industry.
4. Focus on Value-Added Services: Brace Port Logistics offers a suite of services that could enhance revenue and profitability in the future.
5. SME Listing: The company is planning to list on the NSE SME platform, which may limit liquidity compared to the main board.

Risks and considerations

1. Competition: Being a logistics SME in such a highly competitive market with several established players poses several challenges.
2. Economic Slowdown: A slowdown in global trade could impact the company's revenue.
3. Dependence on Key Clients: The company's business is concentrated on a few key clients, which is critically impactful.

Overall assessment

Brace Port Logistics IPO date is approaching and it is a promising company with a strong financial track record. While the IPO's valuation is quite reasonable as compared to recent closed IPOs, the company's focus on value-added services could drive future growth. Nevertheless, what investors must look out for is the competitive market and potential economic risks.