Paradeep Parivahan had a challenging start on the BSE SME platform, with its share price debuting at ₹78.40, marking a notable 20% drop from the initial issue price of ₹98. This initial public offering (IPO), which opened for subscription on March 17 and closed on March 19, attracted considerable interest, evidenced by a subscription rate of 1.78 times by the end of the offering period.
Paradeep Parivahan IPO Insights
The IPO was priced within a band of ₹93 to ₹98 for each equity share, with a face value of ₹10. Investors were required to bid for a minimum of 1,200 shares, with the option to increase their bids in multiples of that number. The company has been recognized as an Authorized Economic Operator (AEO), allowing it to provide comprehensive logistics solutions across various modes of transportation, including air and sea freight, customs clearance, and value-added services.
Company’s Operations and Competitors
Paradeep Parivahan functions as a Multi-Modal Transport Operator (MTO), adeptly managing global cargo transportation that caters to a range of dimensions and weights through integrated transport methods across sea, air, road, rail, and coastal barges. According to its prospectus, some notable publicly traded competitors include Marinetrans India Ltd, which has a P/E ratio of 76.36, and S J Logistics (India) Ltd, with a P/E ratio of 26.
Financial Details of the IPO
The offering comprised a fresh issue of 45,78,000 equity shares, totaling approximately ₹44.86 crore. Notably, there was no offer for sale (OFS) component included in this IPO. The capital generated from this offering is earmarked for various purposes, including the partial fulfilment of long-term working capital requirements and other corporate needs.
Management and Market Making
Share India Capital Services Private Limited is at the helm as the lead manager for the Paradeep Parivahan IPO, while Bigshare Services Pvt Ltd serves as the registrar. Additionally, Share India Securities Limited has taken on the role of market maker for this IPO.
Grey Market Premium Analysis
As of today, the grey market premium (GMP) for Paradeep Parivahan shares stood at ₹0, indicating that the shares are trading at their issue price of ₹98 without any premium or discount. This reflects a stable market sentiment, where investors are currently not willing to pay above the issue price.
In summary, while the debut of Paradeep Parivahan on the BSE SME has shown some signs of weakness, the company’s established position in the logistics sector and robust operational framework may present future growth opportunities. Investors are encouraged to monitor the developments closely as the company evolves in the competitive landscape of logistics and transportation.
