Is Paradeep Parivahan Limited IPO Worth Investing In?

Paradeep Parivahan Limited, a prominent port services and logistics provider based in Paradip Port, Odisha, has announced its Initial Public Offering (IPO), opening for subscription from March 17 to March 19, 2025. The company aims to raise ₹44.86 crore through this IPO, offering 45.78 lakh equity shares in a book-built issue.

IPO Details:

Price Band: ₹93 to ₹98 per share
Face Value: ₹10 per share
Lot Size: 1,200 shares
Minimum Investment: ₹1,11,600
Listing Platform: BSE SME
Listing Date: March 24, 2025

Company Overview:

Established in 2000, Paradeep Parivahan specializes in various port-related services, including cargo handling, ship husbandry, stevedoring, dredging, and custom house clearance. The company operates across major ports and industrial regions in eastern India, serving sectors such as cargo shipping, cement, steel, and railway siding.

Financial Performance:

Revenue:
- FY 2022-23: ₹202.81 crore
- FY 2023-24: ₹211.62 crore
Profit After Tax (PAT):
- FY 2022-23: ₹6.56 crore
- FY 2023-24: ₹15.02 crore
Reserves & Surplus:
- FY 2022-23: ₹29.40 crore
- FY 2023-24: ₹43.37 crore

The company has demonstrated consistent growth in revenue and profitability over the past two fiscal years.

IPO Objectives:

The funds raised from the IPO will be utilized to meet working capital requirements and for general corporate purposes.

Subscription Details:

On the first day of the IPO, Paradeep Parivahan received a muted response, with an overall subscription of 9%. The retail segment saw a 17% subscription, while the Non-Institutional Investors (NII) category was subscribed at 5%.

Grey Market Premium (GMP):

As of the latest data, the Grey Market Premium for Paradeep Parivahan's IPO is not available, indicating a cautious investor sentiment.

How to Apply:

Investors can apply for the Paradeep Parivahan IPO through the following methods:

ASBA (Application Supported by Blocked Amount): Apply via your bank's net banking facility, ensuring that funds remain in your account until the allotment process is completed.
UPI (Unified Payments Interface): Apply through UPI-enabled platforms such as Zerodha, Groww, or Shoonya.
Offline Application: Submit a physical application form at your stockbroker's office.

Investment Considerations:

Strengths:

Industry Expertise: Over two decades of experience in port operations and cargo management.
Diverse Service Portfolio: Offers a comprehensive range of services, including cargo handling, ship husbandry, and dredging.
Strategic Presence: Operates across key ports and industrial regions in eastern India.
Financial Growth: Demonstrated consistent revenue and profit growth over recent fiscal years.

Risks:

Subdued Initial Subscription: The IPO received a lukewarm response on the first day, with only 9% overall subscription.
Market Conditions: The absence of a Grey Market Premium may reflect cautious investor sentiment.
Industry Challenges: The logistics and port services sector is susceptible to economic cycles and regulatory changes.

Conclusion:

Paradeep Parivahan Limited's IPO presents an opportunity to invest in a company with a solid track record in the port services and logistics sector. However, potential investors should carefully consider the initial subscription response and current market conditions before making an investment decision. Conducting thorough due diligence and consulting with financial advisors is recommended to align this investment with individual financial goals and risk tolerance.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investing in the stock market involves risks, and readers are advised to consult with a certified financial advisor before making any investment decisions.

Sources: moneycontrol.com, m.economictimes.com, goodreturns.in