Paradeep Parivahan Ltd’s Initial Public Offering (IPO) opened for subscription on Monday, March 17, 2025. The company aims to raise ₹44.86 crore through the public issue. A mere 10% of investors subscribed to the IPO on its first day, however.
The subscription window will remain open until Wednesday, March 19, 2025. On March 24, 2025, the shares will be listed on the BSE SME platform.
Paradeep Parivahan Limited IPO Details
- IPO Size: ₹44.86 crore
- Fresh Issue: 45.78 lakh equity shares
- Price Band: ₹93 to ₹98 per share
- Minimum Lot Size: 1,200 shares
- Minimum Investment: ₹1,11,600
- Listing Date: March 24, 2025
- Market: BSE SME
Subscription Status on Day 1
According to data from BSE, the IPO received applications for 2.85 lakh shares against a net issue size of 27.87 lakh equity shares, reflecting a 10% overall subscription on the first day.
- Retail Investors: Applied for 1.56 lakh shares (18% subscription of their quota)
- Non-Institutional Investors (NIIs): Applied for 28,800 shares (4% subscription of their quota)
- Qualified Institutional Buyers (QIBs): No bids were placed on Day 1
- Despite the slow start, analysts believe demand could pick up in the remaining days as more investors evaluate the company’s financials and growth potential.
Anchor Investor Participation
Ahead of the IPO, Paradeep Parivahan raised ₹11.69 crore from anchor investors on March 13, 2025. The company allotted 11.92 lakh shares at ₹98 per share to nine fund schemes, indicating some institutional interest in the offering.
Use of IPO Proceeds
The company plans to utilize the IPO funds for the following purposes:
- ₹35 crore for working capital needs
- The remaining funds will be used for general corporate purposes
Financial Performance Overview
Paradeep Parivahan has shown consistent financial growth in recent years.
FY23:
- Revenue: ₹202.47 crore
- Net Profit: ₹6.55 crore
FY24:
- Revenue: ₹211.26 crore
- Net Profit: ₹15.02 crore
H1 FY25 (April-September):
- Revenue: ₹137.5 crore
- Net Profit: ₹5.17 crore
The company’s net profit margin improved significantly from 1.51% in FY22 to 7.10% in FY24, showcasing better operational efficiency.
About Paradeep Parivahan
Founded in 2000, Paradeep Parivahan Ltd provides a range of port logistics and cargo management services. The company operates mainly from the Paradeep Port in Odisha and offers services like:
- Cargo Handling
- Intra-port Transportation
- Logistics Support for Import Cargo
- Railway Siding Operations
- Crusher Operations
- Special Cargo Management
The company has also collaborated with major corporations like IFFCO for handling heavy machinery and raw material processing.
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IPO Timeline
- IPO Closing Date: March 19, 2025
- Allotment Finalization: March 20, 2025
- Refunds for Unsuccessful Bidders: March 21, 2025
- Shares Credit to Demat Accounts: March 21, 2025
- Listing on BSE SME: March 24, 2025
Should You Invest in Paradeep Parivahan IPO?
While Paradeep Parivahan has reported impressive revenue growth and rising profit margins, the weak initial response raises some concerns. Investors may want to consider the following factors before making a decision:
- Valuation: The IPO’s upper price band of ₹98 per share values the company at a P/E ratio of 10.38x (FY24), which is relatively lower compared to peers.
- Growth Potential: The company’s association with Paradeep Port and its diversified logistics services provide opportunities for long-term growth.
- Market Sentiment: The lack of QIB participation on Day 1 may indicate cautious investor sentiment.
- Financial Stability: With improving profitability, the company is well-positioned for future growth, but sustaining current margins remains a challenge.
Final Thoughts
The Paradeep Parivahan IPO offers an opportunity to invest in the growing logistics sector. However, considering the low subscription on Day 1 and market uncertainties, investors should conduct thorough research before subscribing.
For risk-averse investors, waiting for further clarity on subscription trends and market sentiment could be a safer approach.
Disclaimer: This post is just for your information and shouldn’t be taken as investment. Before deciding what investments to make, investors should talk to financial experts.
