Paradeep Parivahan Ltd, a prominent player in the logistics and port services sector, is set to launch its Initial Public Offering (IPO) on March 17, 2025. This article provides an in-depth look into the company’s IPO details, financials, strengths, risks, and other pertinent information for potential investors.

Company Overview

Incorporated in 2000, Paradeep Parivahan Ltd specializes in logistics and cargo handling services, primarily operating within Paradip Port, Odisha. The company’s services encompass:

• Cargo Handling and Stevedoring: Efficient management of cargo loading and unloading operations.
• Transportation: Offering multimodal transport solutions, including road and rail.
• Custom House Clearance: Facilitating smooth customs procedures for clients.
• Project Cargo Handling: Managing oversized and heavy cargo with expertise.
• Warehousing: Providing storage solutions to various industries.

Over the years, Paradeep Parivahan has established itself as a reliable third-party logistics provider, catering to sectors like cement, steel, and shipping.

IPO Timeline

• Issue Opening Date: March 17, 2025
• Issue Closing Date: March 19, 2025
• Allotment Finalization: March 21, 2025
• Refund Initiation: March 21, 2025
• Shares Credit to Demat Accounts: March 21, 2025
• Listing Date: March 24, 2025

Price Band and Lot Size

• Price Band: ₹93 to ₹98 per equity share of face value ₹10 each.
• Lot Size: 1,200 shares.
• Minimum Investment: ₹111,600 (at the upper price band).

Issue Size and Structure

• Total Issue Size: 4,578,000 equity shares.
• Aggregate Amount: Approximately ₹44.86 crore.
• Allocation:
  • Qualified Institutional Buyers (QIBs): Up to 7,96,800 shares.
  • Non-Institutional Investors (NIIs): Not less than 5,97,600 shares.
  • Retail Individual Investors (RIIs): Not less than 13,93,200 shares.
  • Market Maker Reservation Portion: 5,97,600 shares.

Objectives of the Issue

The net proceeds from the IPO are intended to be utilized for:

• Working Capital Requirements: Approximately ₹35 crore (78.04% of the proceeds).
• General Corporate Purposes: To support various corporate activities.

Financials

All figures are in ₹ Crores.

Strengths

• Diverse Service Portfolio: Offers a comprehensive range of logistics services, including cargo handling, port operations, and multimodal transport.
• Modern Fleet: Maintains a well-equipped fleet ensuring timely and efficient delivery.
• Strategic Partnerships: Collaborations with major industry players enhance service flexibility and customer satisfaction.
• Geographical Reach: Established presence across various regions in India, catering to multiple sectors.

Risks

• Revenue Concentration: Dependence on top 10 customers could impact financials if any major client is lost.
• Competitive Market: Faces intense competition in the logistics industry, which may affect market share and profitability.
• Regulatory Dependencies: Operations require various approvals; any delays or failures in obtaining them could adversely affect business.
• Legal Proceedings: Ongoing legal matters may pose potential risks to operations and financial health.

IPO Anchor Investors Details

The anchor portion of the IPO opened on March 13, 2025. Specific details regarding anchor investors have not been disclosed in the available information.

IPO Promoter Holding

Note: Specific percentages are not disclosed in the available sources.

IPO Grey Market Premium (GMP)

As of now, there is no available information regarding the Grey Market Premium for Paradeep Parivahan Ltd’s IPO.

Final Thoughts

Paradeep Parivahan Ltd’s upcoming IPO presents an opportunity for investors to participate in a company with a solid track record in the logistics sector. The company’s comprehensive service offerings, strategic partnerships, and consistent financial growth are promising. However, potential investors should carefully consider the associated risks, including revenue concentration and market competition, before making investment decisions.