Brace Port Logistics IPO day 1: NSE SME issue booked over 52 times on strong retail demand

Brace Port Logistics IPO witnessed decent demand on Monday, August 19, the first day of subscription, as the public issue was booked over 51 times, driven by high retail demand.

The initial public offering of Brace Port Logistics Limited opened for subscription on August 19. The NSE SME issue will close for bidding on August 21.

Brace Port Logistics IPO was subscribed 52.27 times on the first day of bidding, as per the NSE data. The issue received bids for over 12.06 crore shares against 23.58 lakh shares on offer.

The retail category drove the demand for Brace Port Logistics IPO, with an 81.41-time subscription. Retail individual investors applied for over 9.52 crore shares, against 12 lakh shares set aside for them.

The Non-Institutional Investors (NIIs) category was booked 28.84 times with applications for over 2.3 crore shares against the 8 lakh shares on offer.

The Qualified Institutional Buyers (QIBs) applied for more than 23.61 lakh shares against 3.58 lakh shares set aside for the category. The QIBs’ portion was booked 6.58 times.

Brace Port Logistics IPO: Offer size, price band and lot size

The IPO of Brace Port Logistics Ltd comprises a fresh issue of 30.51 lakh shares. The company has fixed the price band at ₹76 to ₹80 per share for the book-built issue.

The company has fixed the minimum lot size at 1,600 shares. The minimum amount of investment required is ₹1,28,000 for retail investors.

Holani Consultants Private Limited is the book-running lead manager. Link Intime India Pvt Ltd is the registrar for the Brace Port Logistics IPO.

Brace Port Logistics IPO allotment and listing date

Brace Port Logistics IPO allotment status is expected to be finalised on August 22. Shares of Brace Port Logistics will be listed on the NSE SME platform Emerge. The IPO listing date has been tentatively fixed as August 26.

Brace Port Logistics IPO objective

The logistics services company has proposed using the IPO proceeds to finance its working capital requirements and meet other general corporate purposes. The company will use ₹16.10 crore of IPO proceeds to fund the working capital, of which ₹12.10 crore will be deployed in FY 2024-25 and ₹4 crore in FY 2025-26.

Brace Port Logistics expects to expand its business by the end of 2024-25 and Fiscal Year 2025-26.

Brace Port Logistics key financials

Brace Port Logistics reported revenue from operations of 35 ₹55 crore in FY 2023-24 against ₹70.45 crore in the previous 2022-23 financial year.

The EBITDA or operating profit was ₹6.78 crore in FY24 against ₹7.93 crore in FY23. Profit After Tax was ₹4.89 crore in FY24 against ₹6.18 crore in FY23.

About Brace Port Logistics and business model

Brace Port Logistics is a service-based logistics company that provides ocean cargo and air cargo logistics services to customers in all economic sectors.

The company provides various value-added services, such as Air Freight, Warehousing facilities, special cargo services such as handling cargo in foreign countries and delivering it to other foreign countries, and customs clearance services.

Through its group companies and holding company, Brace Port has an extensive global network. It also provides cross-border shipment facilities.

Air Freight Services account for 52.51% of revenue, while Ocean Freight Services account for 47.49%.

The company earns 50.65% of its revenue from services provided in the domestic market while 49.35% of its revenue from export services. The Americas account for a majority of revenues followed by Europe and Asia.