Pranik Logistics
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 Oct 2024 – 14 Oct 2024
- Listing date
- 17 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹77 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹22.47 Cr
- Market cap at offer price
- ₹84.78 Cr
- Promoter holding
- 99.99% → 73.49% pre-issue → post-issue
- ISIN
- INE0VJG01014
- Registrar
- Maashitla Securities Pvt.Ltd.
- Lead managers
- Narnolia Financial Services Ltd.
- Registered office
- P.S.Srijan Tech Park, Plot No.52, Block DN, 14th Floor, Sector V, Salt Lake, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 8,20,800 | — | — |
| Market maker | 1,61,600 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹77
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,23,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,46,400 |
| S-HNI (max) | 8 | 12,800 | ₹9,85,600 |
| B-HNI (min) | 9 | 14,400 | ₹11,08,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.02 | 3.96 |
| P/E (×) | 15.34 | 19.44 |
| Price to book (×) | 3.63 | — |
| Market cap | — | ₹84.78 Cr |
Key performance indicators
- Return on net worth
- 8.70%
- ROCE
- 11.79%
- Debt / equity
- 1.57
- PAT margin
- 4.88%
- NAV per share
- ₹15.47
- Price to book
- 3.63
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pranik Logistics
Pranik Logistics Limited was incorporated as a Private Limited Company on February 24, 2015, and converted to a Public Limited Company on March 7, 2024. The company is engaged as a carrying and forwarding agent providing integrated logistics services from point of origin to point of consumption. It operates a fleet of over 80 owned commercial vehicles (trucks categorized by design, size and capacity including Container Trucks and Platform Trucks) and leases additional vehicles on a trip-to-trip basis. As of the prospectus date, the company operates 30 directly managed warehouses. The company provides customized logistics services to customers across multiple industries including Retail, Customer Durables, Telecom, Manufacturing, Pharma, automotive, food, FMCG, electronics, paint and dairy sectors. The company uses technological systems provided by clients to manage logistics operations and has obtained FSSAI certifications for perishable goods delivery in West Bengal. The company manages a dedicated team of employees and agents handling supply chain operations.
Company Analysis
from RHPPranik Logistics Limited is a pan-India carrying and forwarding agent providing end-to-end logistics solutions including transportation, warehousing, material handling and freight forwarding across retail, FMCG, telecom, manufacturing, and pharma sectors.
Pranik Logistics Limited was incorporated as a Private Limited Company on February 24, 2015, and converted to a Public Limited Company on March 7, 2024. The company is engaged as a carrying and forwarding agent providing integrated logistics services from point of origin to point of consumption. It operates a fleet of over 80 owned commercial vehicles (trucks categorized by design, size and capacity including Container Trucks and Platform Trucks) and leases additional vehicles on a trip-to-trip basis. As of the prospectus date, the company operates 30 directly managed warehouses. The company provides customized logistics services to customers across multiple industries including Retail, Customer Durables, Telecom, Manufacturing, Pharma, automotive, food, FMCG, electronics, paint and dairy sectors. The company uses technological systems provided by clients to manage logistics operations and has obtained FSSAI certifications for perishable goods delivery in West Bengal. The company manages a dedicated team of employees and agents handling supply chain operations.
Objects of the Issue
- Investment in Technology ₹80.00 Lakh p.26
- Capital Expenditure ₹220.00 Lakh p.26
- Working Capital Requirement ₹1,200.00 Lakh p.26
- General Corporate Purposes ₹561.79 Lakh p.26
- Investment in Technology/ERP Rs. 80.00 Lakhs p.102
- Capital Expenditure for setting up warehouses Rs. 220.00 Lakhs p.104
- Working Capital Requirement Rs. 1,200.00 Lakhs p.106
- General Corporate Purposes Rs. 500.17 Lakhs p.112
- Issue Related Expenses Rs. 247.00 Lakhs p.112
Issue Structure
- Total Issue
- 29,18,400 equity shares aggregating to ₹2,247.17 Lakhs
- Fresh Issue
- 29,18,400 equity shares of face value ₹10/- each at ₹77/- per share aggregating to ₹2,247.17 Lakhs
- Offer for Sale
- NIL
- Price Band
- ₹73/- per equity share (Floor Price) to ₹77/- per equity share (Cap Price)
- Lot Size
- 1,600 equity shares as minimum bid lot
- Face Value
- ₹10/- per equity share
Business Model
The company earns revenue from providing integrated logistics services including transportation, warehousing, material handling and freight forwarding. A significant portion of expenses (66.66% as of June 30, 2024) comprises freight and forwarding charges. The company generates revenue from a concentrated customer base, with the top 2 customers accounting for over 50% of revenues, though this concentration has been reducing. Revenue is also concentrated geographically in East India, with top five states (West Bengal, Jharkhand, Maharashtra, Bihar, Orissa) contributing 77% of revenue as of June 30, 2024.
Business Segments
SWOT Analysis
- • Strong revenue growth momentum(p.118)
- • Improving profitability and margins(p.118)
- • Strong Return on Net Worth(p.118)
- • Solid operational cash generation(p.118)
- • Experienced management team(p.115)
- • Pan-India logistics presence with 30 warehouses across 13 states(p.160)
- • Asset-light business model with owned fleet of 86 vehicles plus leased capacity(p.175)
- • Experienced management team with 3-9 years industry experience(p.175)
- • FSSAI certification for perishable goods delivery(p.158)
- • Strong customer retention rate of 86.96% in June 2024(p.177)
- • Integrated end-to-end logistics services covering C&F, warehousing, and transportation(p.158)
- • Company lacks owned premises; operates on subleases(p.32)
- • Heavy dependence on client-provided technology; no independent systems(p.33)
- • Extreme customer concentration; top 2 customers represent 74.75% of revenue(p.34)
- • Negative cash flows from operating, investing and financing activities(p.35)
- • Freight & forwarding charges represent 66.66% of revenue; difficult to control(p.37)
- • Restated financials prepared by peer reviewers, not statutory auditors(p.36)
- • Geographic concentration with top 5 states contributing majority of revenue(p.36)
- • First-generation entrepreneurs with limited industry experience leading the company(p.37)
- • Multiple instances of delayed statutory compliance filings and regulatory non-compliance(p.44)
- • Promoter previously disqualified as director under Section 164(2) of Companies Act(p.45)
- • Pending tax litigation against company and promoters totaling Rs. 2.91 crores(p.33)
- • High leverage with debt-to-equity ratio of 1.57(p.120)
- • High short-term borrowing requirements(p.110)
- • Significant working capital intensity(p.109)
- • Limited scale relative to listed peers(p.121)
- • Discrepancies in historical regulatory filings(p.85)
- • Lack of proprietary technology systems - dependent on client-provided software(p.160)
- • Customer concentration with 23 total customers as of June 2024(p.176)
- • Limited geographical presence primarily concentrated in eastern states(p.159)
- • High dependence on leased warehouses and outsourced vehicles with variable costs(p.175)
- • Limited revenue growth with 33% decline from FY2024 (₹6,770 L) to H1 FY2024 (₹2,249 L)(p.174)
- • Multiple GST compliance violations and pending demand notices across multiple states totaling substantial amounts(p.279)
- • Outstanding TDS and Income Tax demands against the company(p.279)
- • High financial leverage with total debt of Rs. 1,961.83 lakhs against equity of Rs. 1,252.09 lakhs as of June 30, 2024(p.259)
- • Significant reliance on freight and forwarding charges as primary cost driver representing 56.68% of revenue from operations in FY 2024(p.270)
- • High concentration of business with carrying and forwarding services representing 87.24% of revenue from operations(p.267)
- • Promoter has outstanding income tax demands totaling Rs. 4,37,330 plus interest(p.282)
- • India logistics market expected to grow at 7.85% CAGR to reach $557.4B by 2032(p.25)
- • Smart warehousing market expansion driven by e-commerce and automation adoption(p.25)
- • Global smart warehousing market to reach USD 122 billion by 2036 at 15% CAGR(p.24)
- • Growing domestic logistics and warehousing sector driven by e-commerce(p.138)
- • Expansion of warehousing infrastructure(p.104)
- • Technology adoption in logistics through proprietary ERP(p.103)
- • Favorable Indian economic outlook with strong consumption growth(p.138)
- • Rising demand for supply chain and logistics services(p.103)
- • India Smart Warehousing market projected to grow at 14.65% CAGR from 2024-2030 to reach ₹666 crore(p.144)
- • Expansion into northern, central and western regions of India(p.177)
- • Rising e-commerce sector driving demand for logistics services(p.154)
- • Technology advancement adoption to improve operational efficiency(p.177)
- • Government initiatives supporting logistics infrastructure and development(p.154)
- • India Logistics market expected to reach $557.4 billion by 2032 at 7.85% CAGR(p.153)
- • Strategy to transition from third-party freight and forwarding to owned fleet operations to improve margins(p.270)
- • Expansion of owned vehicles fleet for cost optimization with demonstrated YOY growth(p.270)
- • Planned technology investments to build integrated online systems across warehouses and fleet operations(p.270)
- • Growth in carrying and forwarding services through expansion with large corporate clients(p.271)
- • Pan-India logistics network with 30 directly managed warehouses and expansion across multiple states(p.288)
- • Reliance on road networks and transportation infrastructure subject to disruptions(p.39)
- • Business affected by economic slowdown and reduced consumer spending capacity(p.40)
- • Exposure to seasonal fluctuations in customer demand(p.42)
- • Regulatory changes could impose new compliance requirements and increase costs(p.40)
- • Terrorist attacks and communal disturbances could adversely affect business(p.66)
- • COVID-19 or future pandemics could disrupt operations and business continuity(p.64)
- • Foreign exchange controls and investment restrictions limit foreign capital access(p.66)
- • Interest rate fluctuations could increase borrowing costs and reduce profitability(p.60)
- • Regulatory and policy uncertainty(p.67)
- • Economic cyclicality and macroeconomic volatility(p.67)
- • Global financial instability and emerging market contagion(p.67)
- • Geopolitical disruptions and external shocks(p.68)
- • Inflation and rising input costs(p.67)
- • Highly fragmented and competitive logistics industry dominated by unorganized players(p.180)
- • Price competition as key factor in tender awards over service quality(p.180)
- • Competitors may have greater resources than the company(p.180)
- • Volatility in global commodity prices and fuel costs impacting logistics operations(p.149)
- • Customer discontinuance risk with 14 customers discontinued in June 2024(p.177)
- • Geopolitical tensions potentially driving up international commodity prices and disrupting supply chains(p.141)
- • Exposure to regulatory and compliance risks across multiple states with pending GST scrutiny notices and discrepancy matters(p.280)
- • High sensitivity to freight and forwarding expenses volatility which represents over 56% of revenue(p.272)
- • Intense competition in logistics industry with need to compete on quality and pricing(p.275)
- • Dependence on large corporate clients with risk of revenue concentration and client loss(p.271)
- • Exposure to economic cycles and industry cyclicality affecting logistics demand(p.262)
- • Foreign exchange and commodity price volatility impacting operational costs(p.262)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pranav Kumar Sonthalia | Promoter | 98.24% | 72.20% |
| Shradha Kumari | Promoter | 1.75% | 1.29% |
| Minal Sonthalia | Promoter | Negligible | Negligible |
| Pranav Kumar Sonthalia | Promoter | 98.24% | 72.20% |
| Shradha Kumari | Promoter | 1.75% | 1.29% |
| Minal Sonthalia | Promoter | Negligible | Negligible |
| Pranav Kumar Sonthalia | Promoter/Managing Director/Founder | 98.24% | — |
| Shradha Kumari | Promoter/Executive Director | 1.75% | — |
| Minal Sonthalia | Promoter/Non-Executive Director | 0.00% | — |
| Pranav Kumar Sonthalia | Promoter | 98.24% | — |
| Shradha Kumari | Promoter | 1.75% | — |
| Minal Sonthalia | Promoter | 0.00% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.