Pranik Logistics hits 5% upper circuit after making a flat debut on the NSE SME platform; check details

Shares of Kolkata-based small and medium enterprise (SME) Pranik Logistics Ltd made a muted debut on Thursday, October 17, listing nearly flat at a 2.59% premium on the NSE Emerge platform.

Pranik Logistics stock opened the session at ₹79 apiece, compared to its IPO price of ₹77 per share. Within minutes of the trading session's opening, the stock price rose 5% to hit the upper circuit limit at ₹82.95 apiece.

Since the minimum bid quantity to apply for the Pranik Logistics IPO was 1,600 shares, successful bidders who were allotted shares in the primary issue managed listing gains of ₹3,200 (₹2 x 1,600) per lot after trading began in the stock.

Pranik Logistics IPO details

₹22.47-crore initial public offering of Pranik Logistics Limited was open for subscription from October 10 to October 14. The issue was oversubscribed by 218 times during the three-day bidding period, with the company receiving bids for 42.2 crore shares compared with 19.36 lakh shares on offer.

The non-institutional investors’ (NII) category saw a humongous demand, with the portion reserved for them being oversubscribed by more than 744 times. The retail investors’ portion was booked more than 97 times, while the qualified institutional buyers (QIB) category was overbooked by almost 36 times.

The Pranik Logistics IPO was a 100% book-built issue comprising entirely a fresh issuance of 29.18 lakh shares, with no offer-for-sale (OFS) component.

The price band for the IPO was set at ₹73 to ₹77 per share, with the lot size for an application being 1,600 shares.

Ahead of the launch of the IPO, Pranik Logistics had also raised ₹6.32 crore through its anchor investor round. The board of directors of the company, at its meeting held on October 9, had finalised the allocation of 8.2 lakh equity shares to four anchor Investors at an allocation price of ₹77 per share.

The company had announced that it intended to utilise the funds being raised through the fresh issue to meet the expenses for investment in technology, to meet out the capital expenditure and working capital requirements, for general corporate purposes and to cover the issue expenses.

Founded in 2015, Pranik Logistics is a pan-India integrated logistics solutions provider. The company operates as a freight forwarder and transporter. It provides integrated services such as transportation, warehousing, material handling, and freight forwarding to its clients in various industries, such as retail, consumer durables, telecom, manufacturing, and pharmaceuticals.

During the financial year 2023-24, the company’s revenue increased by 11% to ₹67.7 crore compared with ₹60.9 crore in the previous financial year 2022-23. However, profit after tax (PAT) more than quadrupled to ₹4 crore in FY24 compared with ₹93.23 lakh in FY23.