Brace Port Logistics makes strong debut, shares list at 90% premium on NSE SME

Logistics services provider Brace Port Logistics Ltd made a bumper debut on the stock exchange with shares listing at a premium of 90% compared to the initial public offer (IPO) price.

According to exchange data, Brace Port shares listed at ₹152 per share on the NSE SME platform, reflecting gains of 90% compared to the issue price of ₹80 per share.

The stock rose further to 5% to hit the upper circuit limit of ₹159.6 per share on investors' buying. More than 2.78 lakh shares of the company traded in morning deals, and the total traded value was ₹4.36 crore. The company's market valuation stood at ₹180.37 crore.

Brace Port Logistics IPO details

Brace Port Logistics launched its public offer on August 19 to raise ₹24.41 crore from investors. The IPO consisted of a fresh issue of 30.51 lakh shares. Brace Port set the price at ₹76 to ₹80 per share for the book-built offer. The minimum lot size was 1,600 shares. The minimum amount of investment was ₹1,28,000 for retail investors.

At the close of bidding on August 21, the IPO was booked more than 658 times. Bids for over 155 crore shares were received against 23.58 lakh shares on offer.

Retail investors placed bids for 70.64 crore shares against 12 lakh shares on offer, reflecting oversubscription of 588.74 times. Non-Institutional Buyers’ portion was booked 854 times. Bids for 68.35 crore shares were received against 8 lakh shares on offer. Qualified Institutions Buyers’ quota was booked 450 times. QIBs paced bids for 16.12 crore shares against 358,400 shares on offer.

The company finalised the share allotment on August 22.

According to Brace Port RHP, the company would utilise the IPO proceeds to finance its working capital requirements and other general corporate purposes.

Brace Port will utilise ₹16.10 crore to fund the working capital needs. It will deploy ₹12.10 crore in FY 2024-25 and ₹4 crore in FY 2025-26.

About Brace Port Logistics

Brace Port Logistics provides ocean cargo and air cargo logistics services across sectors of the economy. It offers various value-added services like Warehousing facilities, Air Freight, special cargo services such as handling cargo and delivery in other foreign countries and customs clearance services. Air Freight Services contributes a majority of 52.51% of revenue while Ocean Freight services accounts for 47.49% of revenue.

The company reported revenue from operations of ₹55 crore in 2023-24 against ₹70.45 crore in 2022-23. The EBITDA was ₹6.78 crore in 2023-24 compared to ₹7.93 crore in 2022-23. Profit After Tax stood at ₹4.89 crore in FY24 against ₹6.18 crore in FY23.