Paradeep Parivahan IPO opens March 17: Check price band, lot size, strengths, risks and key dates

Paradeep Parivahan IPO: The initial public offer of port service provider Paradeep Parivahan will open for public subscription on March 17. It has set a price band of ₹93 to ₹98 per share. The issue will conclude on March 19.

The initial share sale is a fresh issuance of 45.78 lakh shares worth ₹44.86 crore without an offer-for-sale (OFS) component.

The net proceeds from the fresh issue will be used to meet working capital requirements and general corporate purposes.

Paradeep Parivahan IPO: Lot size

A single lot consists of 1,200 shares, needing a minimum investment of ₹1,11,600.

The company has reserved 35% of the net issue for retail investors, 15% for non-institutional investors and the remaining 50% for qualified institutional buyers.

Paradeep Parivahan IPO: Timeline

• IPO subscription period: March 17 to March 19
• Allotment: March 20
• Initiation of refund: March 21
• Credit of shares to Demat: March 21
• Listing on BSE SME: March 24

Paradeep Parivahan is a port service provider, specialising in cargo handling, port operations and intra-port transportation apart from handling and transportation of port import cargo.

Paradeep Parivahan IPO: Strengths

• The company has a robust fleet of trucks and a strong logistics infrastructure, contributing to timely delivery services.
• Being a multimodal transport operator, Paradeep Parivahan has an array of logistics services.
• Strategic partnership with third-party transportation services allows the company to expand its capabilities and meet customer demands.

Paradeep Parivahan IPO: Risks

• There are pending legal proceedings involving the company, promoters, directors and group companies.
• The company's business demands substantial working capital. Any delay in securing funds could affect financial performance.
• Paradeep Parivahan's top 10 customers contributed 97.09% of revenues for the financial year ended March 31, 2024. Any loss of business from top clients could affect revenue and profitability.